FACTBOX: Key tax pieces of U.S. Senate bailout bill

(Reuters) - To improve chances of passing a $700 billion (392 billion pounds) financial industry bailout package, U.S. Senate leaders have agreed to combine it with a package of tax breaks for renewable energy, businesses and middle class workers.

The roughly $150 billion cost of the tax package is partially offset by some revenue raising measures including one that would change the tax treatment of deferred compensation paid through offshore tax haven accounts.

Major tax provisions in the bill include the following:

* Extends Alternative Minimum Tax relief for some 24 million middle class taxpayers through 2008. Includes some additional AMT relief for people who exercised company incentive stock options.

* Extends provision allowing homeowners who do not itemize their taxes to take a deduction up to $1,000 for state and local property taxes.

* Extends through 2009 a provision allowing some taxpayers to take a deduction for state and local sales taxes.

* Extends a tax break for certain higher education expenses for taxpayers who do not itemize their deductions.

* Includes a provision that would require insurance plans that offer mental health benefits to offer those benefits at the same level as medical-surgical benefits.

* Provides tax exempt private activity bonds for Texas, Louisiana and Midwestern states hit by natural disasters. Also provides other tax benefits to those areas to help develop low income housing and help businesses.