Official Summaries

Financing Our Energy Future Act

This bill allows a publicly traded partnership to derive income from certain clean energy-related activities and still be treated as a partnership for federal income tax purposes.

As background, a publicly traded partnership is a partnership whose interests are traded on an established securities market (or readily tradable on a secondary market). A publicly traded partnership generally is treated as a corporation for federal income tax purposes unless 90% or more of such partnership’s gross income is qualifying income.

Under current law, qualifying income includes 

• interest and dividends;
• real property rents;
• gain from the sale (or disposition) of real property;
• income from certain activities related to minerals and natural resources, source carbon dioxide, and the transportation or storage of certain fuels; and
• gain from the sale (or disposition) of a capital asset or commodities.

Under the bill, the qualifying income is expanded to include income derived from  

• electric power (or thermal energy) generated from renewable energy sources (e.g., wind and solar energy), qualified gasification projects, or advanced nuclear facilities;
• accepting or processing open-loop biomass or municipal solid waste (by certain facilities);
• the storage of electric power or thermal energy using certain energy storage technology;
• the generation, storage, or distribution of electric power (or thermal energy) using combined heat and power system property;
• fuels that use certain carbon oxides as primary feedstock;
• certain renewable chemicals;
• transportation or storage of liquefied or compressed hydrogen;
• the conversion of renewable biomass; and
• certain carbon capture and sequestration facilities.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 510 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 510

   To amend the Internal Revenue Code of 1986 to extend the publicly 
   traded partnership ownership structure to energy power generation 
       projects and transportation fuels, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2025

Mr. Moran (for himself, Mr. Coons, Mr. Barrasso, Ms. Collins, Mr. King, 
 Mr. Warner, Mr. Marshall, Mr. Cornyn, Mr. Curtis, Mr. Cramer, and Mr. 
   Ricketts) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to extend the publicly 
   traded partnership ownership structure to energy power generation 
       projects and transportation fuels, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financing Our Energy Future Act''.

SEC. 2. GREEN ENERGY PUBLICLY TRADED PARTNERSHIPS.

    (a) In General.--Section 7704(d)(1)(E) 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--
                            ``(i) the exploration'',
            (2) by inserting ``or'' before ``industrial source'', and
            (3) by striking ``, or the transportation or storage'' and 
        all that follows and inserting the following:
                            ``(ii) the generation of electric power or 
                        thermal energy exclusively using any qualified 
                        energy resource (as defined in section 
                        45(c)(1)),
                            ``(iii) the operation of energy property 
                        (as defined in section 48(a)(3), determined 
                        without regard to any date by which the 
                        construction of the facility is required to 
                        begin),
                            ``(iv) 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 open-loop biomass or 
                        municipal solid waste,
                            ``(v) the storage of electric power or 
                        thermal energy exclusively using energy storage 
                        technology (as defined in section 48(c)(6)),
                            ``(vi) the generation, storage, or 
                        distribution of electric power or thermal 
                        energy exclusively using energy property that 
                        is combined heat and power system property (as 
                        defined in section 48(c)(3), determined without 
                        regard to subparagraph (B)(iii) thereof and 
                        without regard to any date by which the 
                        construction of the facility is required to 
                        begin),
                            ``(vii) the transportation or storage of--
                                    ``(I) any fuel described in 
                                subsection (b), (c), (d), (e), or (k) 
                                of section 6426, or
                                    ``(II) liquified hydrogen or 
                                compressed hydrogen,
                            ``(viii) the conversion of renewable 
                        biomass (as defined in subparagraph (I) of 
                        section 211(o)(1) of the Clean Air Act (as in 
                        effect on the date of the enactment of this 
                        clause)) into renewable fuel (as defined in 
                        subparagraph (J) of such section as so in 
                        effect), or the storage or transportation of 
                        such fuel,
                            ``(ix) the production, storage, or 
                        transportation of any fuel which--
                                    ``(I) uses as its primary feedstock 
                                carbon oxides captured from an 
                                anthropogenic source or the atmosphere,
                                    ``(II) does not use as its primary 
                                feedstock carbon oxide which is 
                                deliberately released from naturally 
                                occurring subsurface springs, and
                                    ``(III) is determined by the 
                                Secretary, after consultation with the 
                                Secretary of Energy and the 
                                Administrator of the Environmental 
                                Protection Agency, to achieve a 
                                reduction of not less than a 60 percent 
                                in lifecycle greenhouse gas emissions 
                                (as defined in section 211(o)(1)(H) of 
                                the Clean Air Act, as in effect on the 
                                date of the enactment of this clause) 
                                compared to baseline lifecycle 
                                greenhouse gas emissions (as defined in 
                                section 211(o)(1)(C) of such Act, as so 
                                in effect),
                            ``(x) the generation of electric power from 
                        a qualifying gasification project (as defined 
                        in section 48B(c)(1) without regard to 
                        subparagraph (C)) that is described in section 
                        48B(d)(1)(B),
                            ``(xi) in the case of a qualified facility 
                        (as defined in section 45Q(d), without regard 
                        to any date by which construction of the 
                        facility is required to begin) not less than 50 
                        percent of the total carbon oxide production of 
                        which is qualified carbon oxide (as defined in 
                        section 45Q(c))--
                                    ``(I) the generation, availability 
                                for such generation, or storage of 
                                electric power at such facility, or
                                    ``(II) the capture of carbon 
                                dioxide by such facility,
                            ``(xii) the generation of electric power or 
                        energy from any advanced nuclear facility (as 
                        defined in section 45J(d)(2)), or
                            ``(xiii) the production, storage, or 
                        transportation of any renewable chemical 
                        which--
                                    ``(I) is produced in the United 
                                States (or in a territory or possession 
                                of the United States) from renewable 
                                biomass,
                                    ``(II) is not less than 95 percent 
                                biobased content,
                                    ``(III) is not sold or used for the 
                                production of any food, feed, fuel, or 
                                pharmaceuticals,
                                    ``(IV) is approved to use the USDA 
                                Certified Biobased Product label under 
                                section 9002(b) of the Farm Security 
                                and Rural Investment Act of 2002 (7 
                                U.S.C. 8102(b)), and
                                    ``(V) is a chemical intermediate 
                                (as such term is defined in section 
                                3201.109 of title 7, Code of Federal 
                                Regulations (or successor 
                                regulations)),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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