Green Jersey

Bailout includes alt-energy incentives

Plug-in Prius image via jetsongreen.com.

The bailout plan approved by the Senate tonight includes financial incentives for alternative energy. Meaning extensions of tax breaks that might have otherwise expired, and other perks for renewable-energy makers and users.

The perks are grouped into a separate section called the Energy Improvement and Extension Act of 2008. They include: Extensions of tax credits that have been doled out for wind projects, solar and fuel-cell research, and ocean current energy research. Double the tax credits for biodiesel fuel production. The chance to use energy credits against the alternative minimum tax. Credits for steelmakers who buy renewable fuels.

There’s a $2,500 credit for plug-in hybrid vehicles, but there aren’t any such cars available in the U.S. yet. (We wish!) Toyota, GM, VW and some other big names are planning to offer them in the next year or two, though.

Also rolled in: a 3-cent-per-barrel increase to the oil spill liability tax

The financial-rescue blueprint now awaits approval by the House.

More: Details of Senate plan reveal it’s not just for Wall Street (Miami Herald)

Bailout’s failure a boon to renewables? (NYT’s Green Inc. blog)

Green the bailout (New York Times)