Sens. Chris Coons (D., Del.) and Jerry Moran (R., Kan.) late last month reintroduced legislation to give investors in clean energy projects, including advanced nuclear, access to a tax advantage currently available only to fossil fuel investors. The bipartisan bill, the Financing Our Energy Future Act (H.B. 1034), was initially introduced in June 2019.
The measure would enable clean energy companies to form master limited partnerships (MLPs)—business ventures that combine the tax benefits of private partnerships (where profits are taxed only when investors receive distributions) with the liquidity of publicly traded companies. By statute, MLPs are currently available only to investors in energy portfolios for oil, natural gas, coal extraction, and pipeline projects.
A word from the sponsor: “The bipartisan and bicameral Financing Our Energy Future Act will increase investments in a broad range of clean energy sources, create jobs, and significantly reduce emissions in the U.S. power sector by ensuring that clean energy technologies can benefit from the incentives that traditional energy sources have relied on for decades,” said Coons. “This bill has earned broad bipartisan and industry support and is a common-sense way to promote clean energy infrastructure as we rebuild from the pandemic.”
Nuclear endorsement: “Master limited partnerships are a tried-and-true mechanism for attracting investment to U.S. energy projects,” said Judi Greenwald, executive director of the Nuclear Innovation Alliance. “We are encouraged to see this technology-inclusive expansion of MLP eligibility, as it will stimulate important innovations like advanced nuclear energy, enabling commercialization, increasing competitiveness in global markets, and bringing substantial environmental and economic benefits. We commend Senator Coons and the cosponsors of this legislation for their bipartisan leadership.”