Bill > S1656

This bill, the Master Limited Partnerships Parity Act, amends the Internal Revenue Code to expand the types of income that publicly traded partnerships (PTPs) can receive while still being taxed as partnerships rather than corporations. Currently, PTPs are generally taxed as corporations unless a significant portion of their income comes from specific "qualifying income," which historically has included income from fossil fuels. This bill broadens that definition to include income and gains from a wide range of renewable and alternative energy activities, such as the generation of electricity from renewable resources (like solar, wind, and geothermal), electricity storage, combined heat and power systems, waste heat to power projects, renewable fuel infrastructure, the production of renewable fuels and chemicals, energy-efficient building retrofits, and carbon capture and sequestration projects. This change aims to encourage investment in these newer energy sectors by allowing them to utilize the PTP structure, which offers certain tax advantages.