Colorado Politics

Colorado U.S. senators co-sponsor bill with tax breaks for clean energy partnerships

Both of Colorado’s U.S. senators co-sponsored a bill this week to give tax breaks to partnerships between clean energy companies as Congress wrangles with tax reform proposals.

They are trying to create incentives for clean energy companies to build the kind of infrastructure that helped oil companies fuel the U.S. economy.

“It is time we update our tax code to reflect our changing economy and commitment to the health and future of our planet,” Sen. Michael Bennet, a Democrat, said in a statement.

The bill he co-sponsored is called the Master Limited Partnership Parity Act.

It is being introduced at a time House Republicans plan to announce their tax reform bill as soon as this week.

Many of them, along with President Donald Trump, are calling for fewer tax breaks, rather than adding new ones.

A master limited partnership is a business structure taxed at a relatively low rate as a partnership, but the ownership interests of which are traded like corporate stock.

Legal restrictions on master limited partnerships currently make them available only to investors in energy portfolios of oil, natural gas, coal extraction and pipeline projects. The projects typically attract investors through their access to low-cost capital and easy financing.

However, the law does not now allow investors to form master limited partnerships for clean energy projects such as solar power, wind farms and fuel cell production.

As a result, the clean energy industry might lack the funding it needs to build infrastructure and to grow, according to sponsors of the Master Limited Partnerships Parity Act.

“This legislation falls in line with decisions we have been making for years in Colorado to incent clean energy technology development and create jobs throughout our state,” Bennet said.

Sponsors of the bill introduced it as a bipartisan effort to increase its chances of winning approval in Congress.

The bill “proves that we can make this a bipartisan approach to increasing energy security, while also further strengthening the growing industries in Colorado,” Gardner said in a statement.

The legislative proposal won an endorsement from the nonprofit environmental group Environment Colorado.

“It confirms what we already know,” said Garrett Garner-Wells, the group’s director. “When clean energy competes on a level playing field, its benefits drastically outweigh those of fossil fuels.”

Early indications from the House Ways and Means Committee, which is writing tax reform legislation in Congress, is that existing incentives for clean energy will remain in any new proposals. The incentives include the Investment Tax Credit for solar and the Production Tax Credit for wind energy.

During a Ways and Means Committee meeting Monday, some members argued in favor of keeping the tax breaks. They gave no hint of whether they favor new ones.


PREV

PREVIOUS

Colorado governor's budget relies on legislature to find more transportation money

On paper, Gov. John Hickenlooper touts an 11 percent increase in transportation funding from legislation that passed last session, but the draft of his next budget request released to reporters Wednesday doesn’t go further than money lawmakers already have approved. Republicans want to see more “skin in the game” from the state budget before asking […]

NEXT

NEXT UP

Lt. Gov. Donna Lynne traded her Big Apple for a Gold Dome at the Colorado Capitol

Editor’s note:This is the first in a series of personal profiles Colorado Politics will publish about the candidates for governor – as people – before we tear into their politics as the race heats up. No politics were discussed in the making of this article.   In her office on a Friday afternoon, the person […]


Welcome Back.

Streak: 9 days i

Stories you've missed since your last login:

Stories you've saved for later:

Recommended stories based on your interests:

Edit my interests