US Senator Proposes New Tax Break to Promote Green Energy

Freshman  Democratic senator Chris Coons is proposing a way to encourage investment in wind, solar and biofuel projects without sapping too many taxpayer dollars or worsening the bitter partisan battle over energy incentives, reports Roberta Rampton at Reuters News. He introduced new legislation 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. It cuts out politics by applying to all forms of energy. The “master limited partnership” MLP structure lets the market pick the winners by not taxing corporate profits, provided most profits go towards investors. Thus, those companies that profit most, gain the most tax breaks.  Existing government tax breaks designed to help commercialize renewable power are expiring, and face an uphill political battle for renewal. The bill has support from one Republican and five other Democratic senators but is unlikely to be considered this year. Meantime, in the near term, senior policy analyst Whitney Stanco at Guggenheim Partners says the Obama administration would look at extending a similar tax structure, the “real estate investment trust” REIT to renewables.

Source:

http://planetark.org/wen/65611  Reuters World Environment Planet Ark:Tweaking U.S. Tax Code Could Spur Green Energy: Senator  08-Jun-12  Roberta Rampton

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About melharte

Mel (Mary Ellen) Harte is a biologist (PhD) and climate change educator. She co-authored the free online book, COOL THE EARTH, SAVE THE ECONOMY, available at www.CoolTheEarth.US, and writes the CLIMATE CHANGE THIS WEEK column at the HuffingtonPost. Living summers in the alpine Rockies, she is on the frontlines of watching what climate change can do. Her diagnostic digital photographs of wildflowers have appeared in numerous publications.
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