“The bill would allow renewable energy structures to form as MLPs, which are taxed as a partnership, but have ownership interests — usually known as units — that are traded like corporate stock on a market,” Platts reports.
“Forming a renewable project under such a structure would stop profits from being taxed at both the corporate and shareholder level since it would be treated as a partnership for tax purposes,” it adds. “Oil and gas projects can currently be structured as MLPs, which they have been doing since the 1980s, but renewables projects cannot.”
Clean energy ETFs such as PowerShares WilderHill Clean Energy Portfolio (NYSEArca: PBW) also rallied Wednesday. [Alternative Energy ETFs]
Existing MLPs are focused on the transportation, processing and storage of energy and gas. [Master Limited Partnership ETF: Attractive Yields with Risks]
Exchange traded products focused on the sector include ALPS Alerian MLP ETF (NYSEArca: AMLP) and JP Morgan Alerian MLP Index ETN (NYSEArca: AMJ).