Joined by Vermont renewable energy companies that are putting Vermonters to work and charting a cleaner energy future, Representative Peter Welch today announced bipartisan, bicameral legislation that will make it easier to finance renewable energy projects in Vermont and throughout the country.
At AllEarth Renewables in Williston, Welch outlined his Master Limited Partnership Parity Act, which would allow renewable energy companies to take advantage of a key financing tool used by the energy sector known as master limited partnerships (MLPs). For nearly 30 years, MLPs have driven investment in oil, gas, and coal projects. Under current law, renewable energy projects cannot take advantage of MLPs. Welch’ s bill expands the definition of qualified projects to include renewable energy.
‘ Expanding MLP financing to renewable energy projects will be a boost for the renewable industry and for a cleaner energy future. If oil, gas, and coal projects can take advantage of this important tool, there is no reason why renewable projects should be excluded. This is a simple, common sense idea that will drive investment in renewable energy projects for years to come,’ Welch said.
An MLP is a business structure that is taxed as a partnership, but whose ownership interests are traded like corporate stock on a market. Whereas profit from publicly traded C corporations is taxed at both the corporate level and the shareholder level, income from MLPs is taxed only at the shareholder level because it is treated as a partnership for tax purposes.
Welch was joined for the announcement by representatives from AllEarth Renewables, Draker Solar, Nuñez Electric, Northern Power Systems, Encore Redevelopment, Green Lantern Capital, and Engineers Construction.
Welch's office. WILLISTON, Vt. (April 1, 2013)
Welch unveils legislation expanding key tool to finance renewable energy projects
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