Financing Our Energy Future Act

More tax benefits for energy partnerships

This bill would let more energy-related income count as qualifying income for publicly traded partnerships. It would add many activities, including power or heat generation using qualified energy resources, operation of energy property, energy storage, combined heat-and-power, and some biomass or waste processing. It would also cover transport or storage of specified fuels (including liquified or compressed hydrogen), conversion of renewable biomass to renewable fuel, production of fuels made from captured carbon (if they cut lifecycle greenhouse gases by at least 60 percent), some carbon-capture facilities that meet a 50 percent threshold, qualifying gasification projects, and certain renewable chemicals meeting a 95 percent biobased-content and U.S.-production test. Projects must meet several technical limits and definitions in the tax code and Clean Air Act. The change would apply to taxable years beginning after December 31, 2025.