Aug 17 - News Sentinel

You won't feel it when you fill up at the pump or when you pay the power bill for air conditioning, but after five years' work, Congress has cleared an energy policy that tucks consumer incentives in between big energy-industry write-offs.

The biggest consumer impact may be the provision that adds a month to daylight-saving time starting in 2007. Sponsors say extending daylight time from the second Sunday in March to the first Sunday in November will make people feel "sunnier" and save 1 percent on household energy bills. But airlines warn that travelers will pay through higher ticket prices and schedule problems.

The bill's $14.5 billion in energy tax breaks go overwhelmingly to oil and gas companies, electric utilities and other energy firms, but homeowners should see almost $800 million in home-energy tax breaks the next two calendar years, with another $874 million earmarked for drivers who buy alternate-fuel vehicles over the decade.

Analysts say the energy bill won't do much to cut imported oil or slake Americans' thirst for it. U.S. demand was up 2.7 million barrels a day in 2004 alone.

Even White House press secretary Scott McClellan concedes the public won't see much immediate impact: "We didn't get into this overnight and we're not going to get out of it overnight," he said.

But here's what the typical taxpayer could see from the energy bill:

Energy-Efficient Homes

* Taxpayers can claim tax credits totaling $500 in 2006 and 2007 for money spent on existing homes to upgrade heating systems, insulation, windows, doors and thermostats, caulk leaks, install pigmented metal roofs and otherwise cut energy waste. Write-offs for replacement windows are capped at $200, however, while the credit for high-efficiency central air-conditioning, heat pumps and water heaters is capped at $300.

* Contractors who build new energy-efficient houses can claim a new tax credit worth up to $2,000 for homes that are substantially complete starting the day President Bush signs the bill into law.

Alternative Car-and-Driver

* Taxpayers considering an alternate-fuel car, sport utility vehicle or truck stand to reap tax credits worth thousands of dollars, depending on vehicle weight, fuel source and efficiency. The dollar-for-dollar credits are more generous than the current tax deduction allowed only for hybrid vehicles that are certified by the Internal Revenue Service.

* Fuel-cell-powered vehicles weighing less than 8,500 pounds qualify for a base credit of $8,000, with heavier vehicles getting larger credits. Fuel-cell credits are available for vehicles bought through 2014.

* Hybrid vehicles bought through 2010 that use both gasoline and electricity qualify for tax credits worth between $400 and $2,400, based on a sliding scale geared to energy efficiency for cars and light trucks weighing less than 8,500 pounds.