Tax Time and New Diesel Car Owners Taking Credit
WASHINGTON--Consumers that invested in new clean diesel technology last year are now realizing significant federal tax benefits from their diesel purchase decision. According to the Internal Revenue Service, the new generation of clean diesel cars are eligible for federal tax credits ranging from $900 to $1800. The five clean diesel cars (see chart) join seven 2009 hybrid models as eligible for the Alternative Motor Vehicle tax credit.
“At a time when Americans are scrambling to make smart economic and transportation decisions, those that were early adopters of the new generation of clean diesel cars and SUVs are now reaping the benefits of that decision. Cars like the Volkswagen Jetta TDI, the new BMW X5xDrive35d BluePerformance and the Mercedes-Benz ML 320 BlueTEC are breaking new ground and offering new competitive, fuel efficient choices to consumers,” said Allen Schaeffer, Executive Director of the Diesel Technology Forum. “The new diesels are clean, quiet, fun to drive and don’t require consumers to sacrifice power or performance to achieve better miles per gallon,” Schaeffer continued.
Because the tax law enacted in 2005 establishes a manufacturer sales limit of 60,000 units, many popular hybrid models are no longer eligible for the tax credit, however the clean diesel options are relatively new with tax credits still available for consumers.
Clean diesel technology offers up to 40 percent fuel economy savings while at the same time reduces greenhouse gas emissions by about 20 percent compared to gasoline. After years of research and development, 50-state emissions compliant clean diesel vehicles are finally available for consumers in the United States, allowing drivers to reduce their petroleum consumption and CO2 output. In addition to the Volkswagen and Mercedes-Benz products, a number of other manufacturers have new 2009 diesel products coming to market including Audi (Q7 TDI) and BMW (335d and the X5 xDrive35d BluePerformance). Tax credits for these vehicles purchased in 2009 are expected to be announced shortly. In addition, Chrysler, Ford, GM, Honda, Mitsubishi, Nissan, and Subaru have indicated they intend to introduce clean diesel engines in their light-duty cars and trucks.
Since 2000, U.S. registration of diesel vehicles has climbed 80 percent and market researcher J.D. Power and Associates predicts the market will triple over the next five years as more types of diesel vehicles become available from European, Asian and U.S. auto manufacturers. In Europe, where light-duty diesel vehicles have a longer history of being on the road, half of the new cars sold are diesel-powered because the technology is efficient, clean, reliable and durable.
For more information, including a list of diesel vehicles currently available for sale in the U.S., a diesel savings calculator, and links to diesel fuel locators, visit www.dieselforum.org.
ABOUT THE DIESEL TECHNOLOGY FORUM
The Diesel Technology Forum is a non-profit organization dedicated to raising awareness about the economic importance and environmental progress of diesel engines and equipment. Forum members represent the three parts of the modern clean-diesel system: advanced engines, cleaner diesel fuel and effective emissions-control systems.
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Clean Diesel Vehicles Eligible for 2008 Alternative Motor Vehicle Tax Credit |
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| Volkswagen | 2009 Jetta –2.0L TDI Sedan manual and automatic | $1,300 | ||||||||
| Volkswagen | 2009 Sportwagen –2.0L TDI manual and automatic | $1,300 | ||||||||
| Mercedes-Benz | GL320 BlueTEC | $1,800 | ||||||||
| Mercedes-Benz | R320 BlueTEC | $1,550 | ||||||||
| Mercedes-Benz | ML320 BlueTEC | $900 | ||||||||