Congress should consider changing "generous" depreciation rules for corporate capital investment, Senate Finance Committee Chairman Max Baucus said.

Tax breaks for capital investment, including accelerated depreciation, are among the most expensive targeted provisions in the tax code. That makes them a target as lawmakers consider ways to reduce the corporate tax rate without increasing the budget deficit. Companies can deduct many capital expenses for tax purposes faster than they can on their financial statements.

"As we work to make our corporate tax rate more competitive, we must carefully examine changes to our current depreciation system and strike the right balance," the Montana Democrat said today during a hearing by his committee that examined incentives for capital investment and manufacturing.