Senate panel OKs alternative energy tax breaks

WASHINGTON (Reuters) – The Senate Finance Committee approved late on Tuesday some $31 billion in tax credits and financial incentives to boost alternative energy supplies and promote energy-savings steps as part of the Obama administration’s much bigger U.S. economic recovery plan.

The tax breaks would, in part, help wind power and solar energy companies that are having a difficult time getting financing because of tight credit conditions. The incentives also come at time that sharply lower petroleum prices have made alternative energy projects less cost-competitive.

The Senate tax package includes most of the $20 billion in energy tax breaks cleared last week by the House Ways and Means Committee, but the Senate measure adds more incentives to help alternative energy companies.

Like the House’s legislation, the Senate measure would help the wind and solar energy industries, promote energy-efficiency improvements to existing homes and help service stations recoup their costs for installing alternative energy pumps.

“These incentives would create green jobs producing the next generation of renewable energy sources — wind, solar, geothermal,” said Sen. Max Baucus, who chairs the finance panel. “And they would help to combat climate change by reducing our use of carbon-emitting fuels.”

Reuters