Tweaking U.S. tax code could spur green energy: senator

Source: Reuters

Tweaking U.S. tax code could spur green energy: senator

By Roberta Rampton

WASHINGTON | Thu Jun 7, 2012 8:23am EDT

(Reuters) - A freshman Democratic senator thinks he may have found a way to encourage investment in wind, solar and biofuel projects without sapping too many taxpayer dollars or injecting new venom into a bitter partisan battle over energy incentives.

Chris Coons will introduce legislation on Thursday that would allow a broad range of renewable power generation and transmission projects to qualify for a tax structure used widely by pipeline and other energy-related companies.

The bill is unlikely to be considered until after the November presidential election, but may give lawmakers food for thought as they wrestle with whether to extend tax breaks for green energy set to expire this year.

The "master limited partnership," or MLP, structure allows certain types of companies to raise money in the stock market, while having income taxed only at the unit holder level, avoiding corporate income taxes.

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Read more: http://www.reuters.com/article/2012/06/07/us-usa-energy-taxation-idUSBRE85605420120607