At a Senate Finance subcommittee hearing earlier this week DaimlerChrysler Vice-President Mark Chernoby urged Congress to extend tax credits for diesel vehicles to include all diesels. Expanded credits would help offset some of the increased cost of diesel engines and encourage the market for biodiesel. Chernoby also encouraged the legislators to broaden tax breaks on hybrid vehicles, which are currently limited based on the number of vehicles a manufacturer sells.

Toyota has already hit the 60,000 vehicle limit for the maximum credit of $3,150. Prius buyers can now only take $775 and after September they will get nothing. Committee chairman Sen. Jeff Binagaman, D-N.M, felt that the rules should be changed to provide incentives based on efficiency regardless of the technology. That would free up carmakers to use different types of drivetrains as long as they are more efficient.

[Source: Detroit News]

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