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 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 
                        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 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.--
                        The generation or storage of electric power 
                        produced from any facility which is a qualified 
                        facility described in section 45Q(c) and which 
                        disposes of any captured qualified carbon 
                        dioxide (as defined in section 45Q(b)) in 
                        secure geological storage (as determined under 
                        section 45Q(d)(2)).''.
    (b) Renewable Chemical.--Section 7704(d) of such Code is amended by 
adding at the end the following new paragraph:
            ``(6) Renewable chemical.--The term `renewable chemical' 
        means a monomer, polymer, plastic, formulated product, or 
        chemical substance produced from renewable biomass (as defined 
        in section 9001(12) of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 8101(12)), as in effect on the date of 
        the enactment of the Master Limited Partnerships Parity 
        Act).''.
    (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.
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.
Master Limited Partnerships Parity Act