WASHINGTON- The White House is backing a plan by House of Representatives Democrats to let renewable energy firms form tax-advantaged partnerships that the oil and gas industry has used for decades to build out the U.S. pipeline and storage infrastructure, according to three people familiar with the matter.

The expansion would allow the renewable energy industry - from wind and solar to biofuels like ethanol - to form master limited partnerships, known as MLPs, that combine the funding advantages of corporations with the tax advantages of partnerships.

The sources, speaking on condition of anonymity, confirmed White House support for the plan.

Some environmentalists had urged the White House to back a competing plan that would eliminate MLPs for the fossil fuel industry, arguing that the structure gives financial incentives to spur growth in oil and gas at a time when President Joe Biden's administration is trying to lower carbon emissions.

The oil and gas industry has financed billions of dollar in pipeline and storage products under MLPs since President Ronald Reagan first signed legislation in 1986 allowing them as a way to spur energy investment.

The renewable energy industry has long sought access to the corporate structure as a way to even the playing field.

The expansion is included in Democratic-backed $3.5 trillion spending legislation being considered in the House.

(Reporting By Jarrett Renshaw and Laura Sanicola; Editing by Will Dunham and Franklin Paul) ((jarrett.renshaw@thomsonreuters.com;))