"As shale hydrocarbons development surges, redrawing the U.S. energy map, so has construction of pipelines and processing infrastructure. Most of the cash that is financing the enormous capital projects comes from tax-favored investments called master limited partnerships."
"Capital spending by energy companies organized as master limited partnerships, or MLPs, in and around the nation's major shale oil and gas plays is expected to hit $25 billion this year -- bringing the total since 2007 to $113 billion, according to Barclays Capital. Wall Street and energy interests are lining up to make their case to Congress that MLPs are essential to funding the oil and gas boom.
Advocates for the corporate structure, under which the nation's biggest gas pipeline operators pay no corporate tax, are on red alert for signs that House and Senate tax-writing committees might eliminate the partnerships as part of a comprehensive tax reform package. If that happens, they argue, the torrent of investment in expanding U.S. oil and gas infrastructure would take a damaging hit."