There are certain fears in the MLP sector that need to be addressed in the wake of the Federal Energy Regulatory Commission’s (FERC) income tax ruling. The myths include:

The decision affects all MLPsThe FERC ruling only directly impacts a portion of MLPs, namely those with interstate natural gas pipelines with cost-of-service rates. To avoid double-recovery of taxes, an income tax allowance will no longer be permitted for those pipelines.

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