Tax incentives: Biofuels versus hybrid vehicles

Extended tax credits for Toyota hybrids?

When it comes to the energy package that will eventually make its way out of Congress, expect significant incentives for biofuels, but little for hybrid vehicles, according to some analysts.

"Later this year, when lawmakers finish dealing a new hand in the energy legislation game, the biofuels industry will clearly come up with the aces," states Jim Ostroff in Kiplingers recently.

Why no new incentives for hybrid cars? Well, mostly because Toyota is the one with the most to gain. GM and Chrysler, for example, still have not sold one full hybrid. Thus, since Congress capped the incentives by manufacturer, new incentives would really only help Toyota, since every other automaker is still sitting on a large supply of credits.

Good old government inspired competition? I understand the desire to try to get all automakers involved with such technology, however, shouldn't the government also be trying to get as many as-fuel-efficient-as-possible vehicles on the road?