Every time your hybrid Toyota Prius overtakes a conventional car, you leave a message to the driver behind you; “See, I am doing my bit towards scaling down the nation’s energy dependence, at the same time helping to keep the air clean too”! In return you also expect some incentive; it’s only natural! And the incentives used to come in form of federal tax credit! But as the Toyota–so far the biggest hybrid car makers in the USA—reaches its 60,000 hybrid sales limit, you may no longer get tax credit for Toyota models,  as credits apply only to the first 60,000 hybrid cars sold by each auto-manufacturer. This was intended for making the consumers act early.

However, Toyota wants an extension of a Federal tax credit and that stirs up debate and incites comments from the competitors of TM, reports USA Today.

Before reaching the 60000 mark, Toyota’s Prius helped consumers enjoy a tax break up to $3,150, which was an all time high. Since last October, however, the tax incentive for buying a Toyota hybrid was reduced to half and is going to be slashed once again in half from April 1, 2007. It is going to disappear entirely later this year.

In spite of their attainment of the magic mark of 60, 000, the Toyota puts forward their logic for expansion in the tax credit. Jim Press, president of Toyota Motor North America, said in the Detroit Auto Show 2007, “Demand for Prius declined when there was a step down in hybrid tax credits. We need to have a certain volume to get the mainstream in for economies of scale.”

However, the competitors beg to differ. The spokespersons from Honda, General Motors or Ford… all opposed the idea of extension in the tax credits on different grounds. The Alliance of Automobile Manufacturers, of which Toyota is a member, does not seem to take side of the company in this issue. As of now Toyota prominently stands alone in its demand for reauthorization of the subsidies.

However, Toyota is largely banking upon the Federal decision on the basis of fast track resolution for encouraging reasonable use and conservation of renewable energy. The fate may be decided as early as this week, as reports USA today: “The House could act as soon as this week on a fast-track resolution that could serve as a precursor to the kind of legislation that Toyota is seeking.”

Till then the Toyota loyalists must wait with their fingers crossed. Though the whole issue is expected to be analyzed from a pubic benefit standpoint, the common consumers clearly want the tax credit for their favorite Toyota hybrids to continue.