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Oil Report

FACTBOX-Energy tax breaks, spending in U.S. stimulus bill

Feb 13 (Reuters) - The U.S. House of Representatives passed on Friday a nearly $800 billion stimulus package to help revive the American economy. The Senate was also expected to approve the plan.

The bill includes billions of dollars in energy tax breaks and financial incentives and billions more to support energy infrastructure projects:

* Provides $5 billion to help 1 million low-income families weatherize their homes with energy savings windows, insulation and other efficiency items. Would create 32,000 jobs and save the average family $350 a year in energy costs.

* Provides $4.5 billion to make government buildings more energy efficient, saving $2 billion a year in lower energy costs.

* Extends for three years through 2012 the tax credit for producing electricity from wind and through 2013 for electricity generated by biomass, geothermal, hydropower, landfill gas and ocean currents.

* Provides $6 billion in loan guarantees for renewable energy projects and electricity transmission projects.

* Because many wind projects cannot attract investors due to the credit crunch, the bill provides grants of up to 30 percent of the cost of building a renewable energy facility.

* Provides $11 billion in spending and loan guarantees to build a “smart grid” to move renewable electricity supplies and build 3,000 miles (4,800 km) of transmission lines.

* Provides a tax credit of at least $2,500 for purchases of plug-in hybrid vehicles.

* Provides $2 billion to manufacture advanced batteries for vehicles.

* Gives service station owners credit for 50 percent of cost (capped at $50,000) for installing pumps that dispense alternative fuels, such as gasoline made of 85 percent ethanol.

* Provides $3.4 billion for fossil energy research and development.

* Provides $2.5 billion for energy efficiency and renewable energy research.

* Provides $300 million for state matching grants for rebates to consumers buying higher-tier energy-efficient appliances.

Reporting by Tom Doggett and Ayesha Rascoe; Editing by Marguerita Choy

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