On June 24, 2015, the Master Limited Partnership Parity Act (S. 1656) was reintroduced in the House and the Senate. The legislation would provide investors in renewable energy projects with tax breaks that are currently available to investors in fossil fuel-based energy projects. A master limited partnership is taxed as a partnership, but ownership interests are traded like corporate stock, thus avoiding the double taxation that can occur with traditional corporate structures when both profits and dividends are taxed. 'Renewable energy technologies have made tremendous progress in the last several decades, and they deserve the same shot at success in the market as traditional energy projects,' stated co-sponsor of the bill Senator Chris Coons (D-DE). This legislation would extend the benefits of a master limited partnership to biomass, municipal solid waste, solar, cellulosic fuels, biodiesel, algae-based fuels, and other renewable energy technologies.
- Bergeson & Campbell, P.C.
- Master Limited Partnership Parity Act reintroduced to house and ...
Extension of New York’s Clean Heating Fuel Tax Credit
The New York State Clean Heating Fuel Tax Credit has been extended through 2020. The personal income tax credit, which was initially authorized in 2006, is provided to eligible taxpayers for biodiesel purchases used for residential space and water heating. For each percent of biodiesel blended with conventional home heating oil, a tax credit of $0.01/gallon is available up to a maximum of $0.20/gallon. A partial credit will be calculated for buildings with a shared oil storage tank for residential and non-residenti...
Guide to Measuring Biofuel Blending
As the global commitment to renewable energy sources grows, the importanceof using biodiesel as a blending component with diesel fuel has increased.Biodiesel consists of fatty acid methyl esters (FAME) which are produced by thetransesterification of certain feedstock oils, such as soy, rapeseed, canola, and others.The biodiesel is then blended with diesel fuel at amounts required by the regulatoryagencies of different countries. It is important for fuel terminals and distributors, aswell as regulatory agencies,...
EPA Releases Proposed Rule On Renewables Enhancement And Growth Support
On October 3, 2016, the U.S. Environmental Protection Agency (EPA) released the proposed Renewables Enhancement and Growth Support Rule. This proposed rule includes suggestions to improve the Renewable Fuel Standard (RFS) program and related pro-renewable fuel regulations. Updated regulations included in the proposed rule include allowing biofuel producers to process feedstock and then convert the material into fuels at different facilities, and an expansion to the availability of high-ethanol fuel blends. The...
DC Water Taps Into Biodiesel’s Sustainability Benefits
Sustainability is more than a buzzword at DC Water. Ingrained throughout the agency, sustainability is in high gear at DC Water’s fleet division where biodiesel fuel powers all 230-diesel vehicles, and emissions are closely monitored. “Biodiesel just makes sense,” said Timothy Fitzgerald, Director Fleet Management for DC Water. “We switched to biodiesel in 2007 and have never looked back. It can be used in existing diesel engines, reduces emissions, and our drivers notice a big difference...
Brazil Backtracks From Plan To Increase Ethanol Use Through Tax Breaks
On August 24, 2016, Brazil`s government announced that it would not be extending a tax break on ethanol sales that is due to expire in December 2016. During the 2015 Paris Climate Accord, Brazil pledged to increase cane-based ethanol and biodiesel to nearly 18 percent of its total energy mix by 2030, requiring an increase in annual ethanol production from 30 billion liters in 2015/2016 to 50 billion liters in 2030. The loss of the ethanol tax break prevents biofuel from being cost competitive with gasoline, and...