Senate Panel Backs Alternative Fuel Tax Breaks

A Senate committee approved $28 billion in tax breaks Tuesday to underwrite renewable fuels and “clean coal” technology, but the full Senate cut back provisions that would greatly expand diesel fuel made from coal, the New York Times reported.

The Senate Finance Committee’s action — which will be attached to a broader energy bill being debated on the Senate floor — would give “substantial benefits” to the coal industry, the Times said.

But the full Senate rejected two measures in the overall energy bill aimed at vastly expanding the production of diesel fuel made from coal, the paper reported.

Senate leaders plan to attach the tax package to a broader energy bill, which they hope the full Senate will approve by the end of this week, the Times said.