Businesses that install fuel cells could get tax breaks after Senate Democrats aimed to highlight their commitment to renewable energy.

Scott Segal, an energy lobbyist in Washington, said that the answer to climate change was with "transformative technologies".

The tax incentives are not permanent and they require frequent reauthorisation making it hard for businesses to plan.

Incentives are being pushed through and wind, solar and fuel cell projects could all be covered by the laws which could be worth nearly $3 billion over the next decade, the LA Times reports.

But the proposals are facing opposition from Republicans who want to limit the scope of the package.

Chad Stone, Chief Economist at the Center on Budget and Policy Priorities, said that it made "no sense".

Max Baucus, Senate Finance Committee Chairman, said his package would allow "Americans to be energy independent".

If Mr Baucus' plans get the vote, which is scheduled for Wednesday, then amendments may be added to the House-approved package.

Source:

Democrats push 'green' energy tax breaks, 05/02/08
http://www.latimes.com/business/taxes/la-na-stimulus5feb05,1,2620566.story?ctrack=2&cset=true


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