Pipeline Stocks Plunge After FERC Kills Key Income-Tax Allowance

  • U.S. energy regulator reverses longstanding tax policy
  • Alerian MLP Index falls as much as 9.4 percent Thursday
Photographer: Konstantinos Tsakalidis/Bloomberg
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Pipeline stocks plunged after federal regulators ruled that master-limited partnerships can no longer receive a credit for income taxes they don’t pay.

Williams Cos. was the biggest decliner in the S&P 500 Index, dropping as much as 12 percent, while the Alerian MLP Index, which tracks 40 partnerships, had its worst day in more than two years.