UPDATE 3-Senate extends energy tax credits in housing bill

(Recasts, adds comments from Sen. Ensign and wind energy group)

By Tom Doggett and Kevin Drawbaugh

WASHINGTON, April 10 (Reuters) - The U.S. Senate voted on Thursday to include in a housing rescue bill an extension of tax incentives that encourage renewable energy production and investments to reduce energy use.

A tax credit would be extended for one year through 2009 for producing electricity from wind, biomass, hydropower and geothermal facilities.

Businesses and homeowners would also be able to offset 30 percent of the cost of installing solar or fuel cell equipment with a one-time tax credit.

The energy measure was approved by an 88-to-8 vote.

Extending the tax credits would ensure that up to $20 billion in planned renewable energy projects and investments go forward, the measure's sponsors said.

"These incentives are necessary for our energy security and to help jumpstart our economy," said Republican Sen. John Ensign of Nevada, who co-sponsored the energy proposal with Democrat Maria Cantwell of Washington.

Shares of several solar power companies soared last week when the energy proposal was unveiled.