Master Limited Partnerships and Real Estate Investment Trusts

Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) are two proposed investment vehicles that have the potential to lower the high cost of capital for renewable energy assets-a critical factor in the U.S. Department of Energy's goal for renewable energy to achieve grid-parity with traditional sources of electric generation. Due to current U.S. federal income tax laws, regulations, and administrative interpretations, REITs and MLPs cannot finance a significant portion of the cost of renewable energy assets. Topics discussed in this compilation include the opportunites and potential complications for renewable energy with the master limited partnerships and real estate investment trusts; the technical qualifications for treating photovoltaic assets as real property by real estate investment trusts; master limited partnerships parity act; and master limited partnerships as an option for the renewable energy industry.