what's up

With gas prices hovering at the $3 mark and clean energy all the rage, energy policy is a perennial target in Congress these days.

Last year lawmakers passed a bill that hiked up gas mileage standards, gave an extra boost to ethanol production and phased in other efficiency standards - but a few green measures which didn't make it through may be back on Congress' plate in '08.

green tax incentives

The Senate blocked a measure last year that would extend and expand incentives for green energy; the sticking point being that it would've been paid for by rollbacks on tax breaks for big oil.

The House passed a similar bill in February '08 - with the same deal-killer oil tax hikes. Below is a snapshot of what's in the bill.

Tax credit would include:

• $6.5 billion to extend tax credits for wind and other renewables for three years;
• $1 billion for those who buy plug-in hybrids;
• $1.5 billion in credits for energy efficient homes;
• $2 billion for green community programs;
• $2 billion for transportation projects in New York.

They'd be paid for by:

• $13.5 billion (over 10 years) in rollbacks on tax credits for big oil;
• $4 billion by switching up how oil companies can claim foreign tax credits.

The Senate is trying out the idea of passing a bill that'd raise green energy tax perks without any accompanying tax hikes for big oil. It's unclear if the House would be willing to back them up.

Updated March 31, 2008