The Business, Entrepreneurship & Tax Law Review


K. Alex Langley


This article addresses possible tax incentives that may be available in addition to or as an alternative to current tax credits. First, it will provide an overview of America’s ever-evolving energy policy. This section explains why the country’s energy policies resemble a rollercoaster. Second, this article offers a brief history of tax credits, specifically clean energy tax credits and fossil fuel tax credits. Part three describes Master Limited Partnerships (“MLPs”) and Real Estate Investment Trusts (“REITs”), two tax-flavored entity choices used by the oil and gas industry to improve their bottom line. Specifically, part three explores the tax benefits of forming an entity under this model as opposed to a corporation or partnership. Part four discusses criticisms waged against clean energy tax credits including why many conservatives oppose these tax credits yet support fossil fuel tax credits. Finally, the article proposes that clean energy entities should be allowed to reorganize as REITs or MLPs. In addition, Congress should extend clean energy tax credits for another five years, with phase-outs. This article concludes that combining new tax structures for clean energy with guaranteed tax credits for five years will bring stability to the energy markets and move the country one step closer to its lofty goal of ending its dependence on foreign oil, and providing a stable source of clean energy for generations to come.

First Page




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