Thursday, January 3, 2013

Expect more energy tax breaks this year

In addition to the tax breaks for renewable energy and more sustainable transportation I listed in Good news for food and energy in the Fiscal Bluff deal and More energy-related news in the Fiscal Bluff deal, there will be more coming this session of Congress, as Reuters via Scientific American reported in Lawmakers to push tax code change for renewable energy in 2013.
WASHINGTON (Reuters) - A group of U.S. lawmakers said on Wednesday that they plan to push ahead in the new year to change the tax code so renewable energy projects could qualify for beneficial tax structures commonly used by pipelines and other energy-related companies.

Democratic and Republican sponsors of proposed legislation said they think momentum is growing for their idea to allow wind, solar, biofuel and other renewable projects to structure as "master limited partnerships" (MLPs).

The structures allow companies to raise money in the stock market, while having income taxed only at the unit holder level, thus avoiding corporate income taxes.

"Small tweaks to the tax code could attract billions of dollars in private sector investment to renewable energy deployment," the 29 lawmakers said in a letter to President Barack Obama, asking for the administration's support.
That's good news for renewable energy, as it levels the playing field with established fossil fuels.

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