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Abstract

In April of 2013, Democratic Senator Chris Coons of Delaware introduced legislation that seeks to level the playing field between renewable and non-renewable energy companies. Titled the “Master Limited Partnerships Parity Act” (MLPPA), the legislation would amend the federal tax code to allow renewable energy companies to form master limited partnerships and thereby gain valuable financing and tax advantages. This legislation would clear the way for the formation of master limited partnerships investing in renewable energy, which would have significant impact on clean energy production in the United States. This article discusses the Master Limited Partnerships Parity Act and explores the advantages and disadvantages of master limited partnerships as a business organization for renewable energy companies and ultimately argues for the passing of this valuable legislation.

The article is divided into six sections. Part I defines master limited partnerships and examines their corporate structure and how they operate as compared to other types of business organizations. Part II delineates the history and evolution of master limited partnerships over the last thirty years. Part III describes the Master Limited Partnerships Parity Act, including its history, purpose and aims. Part IV then details the arguments in support of the Master Limited Partnerships Parity Act, while Part V gives the arguments in opposition to the Act. The article then concludes in Part VI with the author's recommendations and conclusions that the Master Limited Partnerships Parity Act is a step in the right direction for the development of the clean energy sector and environmental protection in the United States.

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