Master Limited Partnerships Parity Act

Summary: Master Limited Partnerships Parity Act  Amends the Internal Revenue Code, with respect to the tax treatment of publicly traded partnerships as corporations, to expand the definition of &quot;qualifying income&quot; for such partnerships to include income and gains from renewable and alternative fuels (in addition to fossil fuels), including energy derived from thermal resources, waste, renewable fuels and chemicals, energy efficient buildings, gasification, and carbon capture in secure geological storage.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Master Limited Partnerships Parity 
Act''.

SEC. 2. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE TO 
              ENERGY POWER GENERATION PROJECTS, TRANSPORTATION FUELS, 
              AND RELATED ENERGY ACTIVITIES.

    (a) In General.--Subparagraph (E) of section 7704(d)(1) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``income and gains derived from the 
        exploration'' and inserting ``income and gains derived from the 
        following:
                            ``(i) Minerals, natural resources, etc.--
                        The exploration'',
            (2) by inserting ``or'' before ``industrial source'',
            (3) by inserting a period after ``carbon dioxide'', and
            (4) by striking ``, or the transportation or storage'' and 
        all that follows and inserting the following:
                            ``(ii) Renewable energy.--The generation of 
                        electric power (including the leasing of 
                        tangible personal property used for such 
                        generation) exclusively utilizing any resource 
                        described in section 45(c)(1) or energy 
                        property described in section 48 (determined 
                        without regard to any termination date), or in 
                        the case of a facility described in paragraph 
                        (3) or (7) of section 45(d) (determined without 
                        regard to any placed in service date or date by 
                        which construction of the facility is required 
                        to begin), the accepting or processing of such 
                        resource.
                            ``(iii) Electricity storage devices.--The 
                        receipt and sale of electric power that has 
                        been stored in a device directly connected to 
                        the grid.
                            ``(iv) Combined heat and power.--The 
                        generation, storage, or distribution of thermal 
                        energy exclusively utilizing property described 
                        in section 48(c)(3) (determined without regard 
                        to subparagraphs (B) and (D) thereof and 
                        without regard to any placed in service date).
                            ``(v) Renewable thermal energy.--The 
                        generation, storage, or distribution of thermal 
                        energy exclusively using any resource described 
                        in section 45(c)(1) or energy property 
                        described in clause (i) or (iii) of section 
                        48(a)(3)(A).
                            ``(vi) Waste heat to power.--The use of 
                        recoverable waste energy, as defined in section 
                        371(5) of the Energy Policy and Conservation 
                        Act (42 U.S.C. 6341(5)) (as in effect on the 
                        date of the enactment of the Master Limited 
                        Partnerships Parity Act).
                            ``(vii) Renewable fuel infrastructure.--The 
                        storage or transportation of any fuel described 
                        in subsection (b), (c), (d), or (e) of section 
                        6426.
                            ``(viii) Renewable fuels.--The production, 
                        storage, or transportation of any renewable 
                        fuel described in section 211(o)(1)(J) of the 
                        Clean Air Act (42 U.S.C. 7545(o)(1)(J)) (as in 
                        effect on the date of the enactment of the 
                        Master Limited Partnerships Parity Act) or 
                        section 40A(d)(1).
                            ``(ix) Renewable chemicals.--The 
                        production, storage, or transportation of any 
                        qualifying renewable chemical (as defined in 
                        paragraph (6)).
                            ``(x) Energy efficient buildings.--The 
                        audit and installation through contract or 
                        other agreement of any energy efficient 
                        building property described in section 
                        179D(c)(1).
                            ``(xi) Gasification with sequestration.--
                        The production of any product or the generation 
                        of electric power from a project that meets the 
                        requirements of subparagraphs (A) and (B) of 
                        section 48B(c)(1) and that separates and 
                        sequesters in secure geological storage (as 
                        determined under section 45Q(d)(2)) at least 75 
                        percent of such project's total qualified 
                        carbon dioxide (as defined in section 45Q(b)).
                            ``(xii) Carbon capture and sequestration.--
                                    ``(I) Power generation 
                                facilities.--The generation or storage 
                                of electric power (including associated 
                                income from the sale or marketing of 
                                energy, capacity, resource adequacy, 
                                and ancillary services) produced from 
                                any power generation facility which is, 
                                or from any power generation unit 
                                within, a qualified facility described 
                                in section 45Q(c) which--
                                            ``(aa) in the case of a 
                                        power generation facility or 
                                        power generation unit placed in 
                                        service after January 8, 2013, 
                                        captures 50 percent or more of 
                                        the qualified carbon dioxide 
                                        (as defined in section 45Q(b)) 
                                        of such facility and disposes 
                                        of such captured qualified 
                                        carbon dioxide in secure 
                                        geological storage (as 
                                        determined under section 
                                        45Q(d)(2)), and
                                            ``(bb) in the case of a 
                                        power generation facility or 
                                        power generation unit placed in 
                                        service before January 9, 2013, 
                                        captures 30 percent or more of 
                                        the qualified carbon dioxide 
                                        (as defined in section 45Q(b)) 
                                        of such facility and disposes 
                                        of such captured qualified 
                                        carbon dioxide in secure 
                                        geological storage (as 
                                        determined under section 
                                        45Q(d)(2)).
                                    ``(II) Other facilities.--The sale 
                                of any good or service from any 
                                facility (other than a power generation 
                                facility) which is a qualified facility 
                                described in section 45Q(c) and the 
                                captured qualified carbon dioxide (as 
                                so defined) of which is disposed of in 
                                secure geological storage (as 
                                determined under section 45Q(d)(2)).''.
    (b) Renewable Chemical.--
            (1) In general.--Section 7704(d) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(6) Qualifying renewable chemical.--
                    ``(A) In general.--The term `qualifying renewable 
                chemical' means any renewable chemical (as defined in 
                section 9001 of the Agriculture Act of 2014)--
                            ``(i) which is produced by the taxpayer in 
                        the United States or in a territory or 
                        possession of the United States,
                            ``(ii) which is the product of, or reliant 
                        upon, biological conversion, thermal 
                        conversion, or a combination or biological and 
                        thermal conversion, of renewable biomass (as 
                        defined in section 9001(12) of he Farm Security 
                        and Rural Investment Act of 2002),
                            ``(iii) the biobased content of which is 95 
                        percent or higher,
                            ``(iv) which is sold or used by the 
                        taxpayer--
                                    ``(I) for the production of 
                                chemical products, polymers, plastics, 
                                or formulated products, or
                                    ``(II) as chemicals, polymers, 
                                plastics, or formulated products,
                            ``(v) which is not sold or used for the 
                        production of any food, feed, or fuel, and
                            ``(vi) which is--
                                    ``(I) acetic acid, acrylic acid, 
                                acyl glutamate, adipic acid, algae 
                                oils, algae sugars, aromatics, 1,4-
                                butanediol, iso-butanol, n-butanol, 
                                carboxylic acids, cellulosic sugar, 
                                diethyl methylene malonate, ethyl 
                                acetate, farnesene, gamma-
                                butyrolactone, glucaric acid, 
                                hexamethylenediamine, 3-hydroxy 
                                propionic acid, C10 hydrocarbons, 
                                isoprene, itaconic acid, ketals, 
                                levulinic acid, olefins, 
                                polyhydroxyalkonate, polylactic acid, 
                                polyitaconic acid, polyols from 
                                vegetable oils, poly(xylitan levulinate 
                                ketal), 1,3-propanediol, 1,2-
                                propanediol, succinic acid, terpenes, 
                                thiols, or p-Xylene, or
                                    ``(II) any chemical not described 
                                in clause (i) which is a chemical 
                                listed by the Secretary for purposes of 
                                this paragraph.
                    ``(B) Biobased content.--For purposes of 
                subparagraph (A)(iii), the term `biobased content 
                percentage' means, with respect to any renewable 
                chemical, the biobased content of such chemical 
                (expressed as a percentage) determined by testing 
                representative samples using the American Society for 
                Testing and Materials (ASTM) D6866.''.
            (2) List of other qualifying renewable chemicals.--Not 
        later than 180 days after the date of the enactment of this 
        Act, the Secretary of the Treasury (or the Secretary's 
        delegate), in consultation with the Secretary of Agriculture, 
        shall establish a program to consider applications from 
        taxpayers for the listing of chemicals under section 
        7874(d)(6)(A)(vi)(II) (as added by paragraph (1)).
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.