Clean diesel vehicle? Get hybrid-car tax benefits!
New Energy Law offers Will Provide up to $3,400 in Tax Incentives for Diesel Cars, Trucks and SUVs
OUR AUTOMOBILES CORRESPONDENT
1 August, 2005: /PRNewswire/ -- American drivers who purchase newer, cleaner-burning diesel cars, trucks
and SUVs will soon be eligible for the same kind of tax incentives as purchasers of gasoline-hybrid electric
vehicles under a new national energy plan expected to be signed into law soon by President George W. Bush.
Along with hybrids, clean diesel vehicles offer a fuel sipping alternative that is 20 to 40 percent more efficient
than gasoline alternatives, according to the Diesel Technology Forum (DTF).
"Congress and the president recognize the important role clean diesel technology will play in meeting America's
future energy and environmental goals," said Allen Schaeffer, executive director of DTF. The U.S. Department of
Energy reports that if diesel vehicles reached a 30 percent market share by 2020, it would reduce U.S.
consumption of oil by 350,000 barrels a day.(1)
Beginning January 1, 2006, the new law allows consumers who purchase some new diesel-powered cars, light
trucks and SUVs to be eligible for up to $3,400 in tax credits based on the weight, fuel efficiency rating and
emissions level of the vehicle, as determined by the U.S. Environmental Protection Agency. The credit is available
through December 31, 2010.
"These incentives are an important step in expanding the market for energy efficient vehicles," said Schaeffer.
When Congress first enacted tax incentives for hybrid vehicles in 2001 there were just two hybrid models on the
market. Thanks in part to those incentives, there will be nearly 10 hybrid models for sale in the U.S. by the end of
the year. "Now that diesel vehicles will be eligible for the same advanced-vehicle credits as hybrids, we -- along
with a growing chorus of industry analysts -- expect similar growth in the clean diesel market," added Schaeffer.
Last month J.D. Power and Associates reported that diesel and hybrid vehicles are expected to garner 11 percent
of U.S. auto sales by 2012 -- with the diesel market increasing from 3 percent market share in 2004 to 7.5
percent by that date. According to R.L. Polk data compiled by DTF, diesels have already seen 56 percent market
growth over the past five years with the introduction of four new models in 2004 alone (Jeep Liberty
CRD, Mercedes E- 320 CDI, and Volkswagen Touareg and Passat). This is in addition to the continuing popularity of
diesel engine options in medium- and heavy-duty pickups.
The Diesel Technology Forum represents manufacturers of engines, fuel and emissions control system.
OUR AUTOMOBILES CORRESPONDENT
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