U.S. Senate to vote on renewable energy tax breaks

The U.S. Senate plans to vote next week on an economic stimulus bill that includes incentives for renewable energy.

A $146 billion stimulus plan passed the House of Representatives earlier in the week, but that version did not include the incentives.

The Senate Finance Committee added tax credits aimed at helping homeowners lower their heating and cooling costs and to give a boost to the wind and solar industries.

The tax credits for retrofitting homes with energy efficient windows, insulation and furnaces expired in December, while the solar and wind credits are set to expire at the end of this year.

Under the Senate's proposed package, all of the credits would be extended to the end of 2009.

Lawmakers tried to include the incentives in an energy bill signed into law in December, but dropped the  package to avoid a threatened presidential veto (U.S. solar & wind incentives on the way?).

The vote was expected this week, but was pushed back to give Senators Hilary Clinton, Barack Obama and John McCain, who are out on the presidential campaign trail, time to get back to Washington, D.C.

The three senators, as well as former governor of Massachusetts Mitt Romney, are all busy in the buildup to Super Tuesday on Feb. 5, when nearly two dozen states will hold primaries or caucuses, including California, New York, New Jersey and Illinois.

The stimulus bill was designed to inject cash into the economy over two years. The centerpiece of the bill is a plan to send tax rebates checks up to $600 to individuals and $1,200 to couples.

The Senate will vote next week on whether to go forward with the finance committee's bill or the version from the House.

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