incentive distribution rights (IDRs)

An incentive plan designed to give general partners in a limited partnership, increasing shares of the distributable cash-flow generated by the partnership, as per-unit distribution increases to the limited partners. While the general partner's share may start as low as 2%, it can increase to higher levels up to 50% depending on the specific scheme. In this way the IDR is intended to incentivize partners by providing incremental increases measured during an established time frame.