Senate Committee Approves Energy Incentives, Tax Breaks

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he Senate Finance Committee approved a package of energy tax breaks and financial incentives that will be tacked on to pending energy legislation, news services reported.

Sen. Charles Grassley (R-Iowa) said the $10.7 billion, five-year package of incentives include extending for three years through 2008 a tax credit for electricity produced from renewable sources and a tax credit for small ethanol producers.

Grassley said he plans to offer the tax package next week as an amendment to a comprehensive energy bill being debated in the Senate, Reuters reported.

The total package came in under the $11 billion cap imposed by the Senate budget writers, but was more than double the $6.7 billion limit the White House had sought over 10 years, Reuters reported.