Sponsors (2)
I'll give you the short version of this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Expands the federal tax code so certain clean energy businesses can use the publicly traded partnership (PTP) structure without being taxed like a corporation. The bill adds a list of qualifying activities—such as power from clean resources, energy storage, hydrogen, carbon‑captured fuels, advanced nuclear, and biobased chemicals—that count as “qualifying income.” This change makes it easier and cheaper for these projects to raise money from public investors, similar to how many oil and gas pipelines have long done. The rule applies for taxable years beginning after December 31, 2025.
Amend the Internal Revenue Code by replacing the list in section 7704(d)(1)(E) so that income and gains derived from the listed green energy activities qualify under that provision (i.e., the changes add the enumerated activities (ii) through (xiii) as qualifying).
Income and gains from the generation of electric power or thermal energy exclusively using any qualified energy resource are included as qualifying income.
Income and gains from the operation of energy property (as defined in section 48(a)(3)) are included, with the definition applied without regard to any date by which construction must begin.
For facilities described in paragraph (3) or (7) of section 45(d), income from accepting or processing open‑loop biomass or municipal solid waste is included, with relevant placed‑in‑service and construction dates disregarded.
Income from the storage of electric power or thermal energy is included when storage uses energy storage technology as defined in section 48(c)(6).
Expand sections to see detailed analysis
Referred to the House Committee on Ways and Means.
Introduced April 1, 2025 by Ron Estes · Last progress April 1, 2025
Referred to the House Committee on Ways and Means.
Introduced in House