Jetta TDI first clean diesel to qualify for tax credit (IRS Approved)

www.dieselforecast.com ^ | 08/21/2008 | by Sam Abuelsamid

[Red Badger]

Volkswagen has a number of firsts for its 2009 Jetta TDI.

It is the first new diesel powered passenger car on the market in the U.S. to qualify for sales in all 50 states under the Tier 2 Bin 5 (T2B5) emissions standard. And now it's also the first diesel car to qualify for a federal income tax credit under the Advanced Lean Burn Technology Motor Vehicle income tax credit program.

The Internal Revenue Service has certified that the 2009 Jetta TDI qualifies for a one-time tax credit of $1,300. That is the same amount that buyers of General Motors mild hybrid vehicles (Saturn Aura and Vue, and Chevrolet Malibu) receive. The Jetta TDI is the first non-hybrid vehicle to qualify for the program.

The tax credit is available for a limited time based on vehicle sales. Once a manufacturer has sold more than 60,000 units of a hybrid or advanced lean burn vehicle, the IRS begins phasing out the credits. Several hybrid vehicles that have been on the market for several years are no longer eligible for tax credits including the Toyota Prius and Camry.

The 2009 Jetta is powered by a 2.0L four cylinder turbodiesel paired with a choice of 6-speed manual or dual clutch automatic transmissions. The EPA has rated the DSG-equipped Jetta at 29 mpg city and 40 mpg on the highway. Anecdotal evidence from owners of older Jetta diesels indicates real-world mileage should be closer to 40 mpg in combined driving.

The $1,300 tax credit brings the net price premium for a Jetta TDI to only $700 more than a comparable model with the 2.5L gasoline five cylinder engine. Volkswagen dealers across North America now have Jetta TDI demonstration models on hand that are available for test drives. During the recent drive of Mercedes-Benz new BlueTec diesel SUVs company officials indicated that they also expect those vehicles to qualify for the tax credit.

[Red Badger]

Rest In Peace, old friend, your work is finished.....

If you want ON or OFF the DIESEL ”KnOcK” LIST just FReepmail me.....

This is a fairly HIGH VOLUME ping list on some days.....

[SampleMan]

My 1986 gas Jetta got 40mpg, and gas is cheaper than diesel. How is this revolutionary?

[1rudeboy]

Wonderful. I wonder how much VW will add to the price-premium?

[PJammers]

I owned a 1998 TDI that regularly got 50 MPG. Only problem with VW is that the car falls apart around the engine.

Must be the anti-pollution gear that drives the MPG down.

[Red Badger]

Your ‘86 Jetta cannot pass the environmental regs of 2009............

[Osage Orange]

“Clean” diesel is the key.........

[Gay State Conservative]

Does the math work regarding better mileage vs higher fuel costs these days? I remember....not too long ago,in fact....when diesel was noticeably cheaper (percentage-wise) than regular.Today the reverse is true.

[Southack]

Tax credits for buying imports. The mind boggles at the Million$$ spent by unions to elect Democrats who voted to give taxpayer money to green imports!

[HamiltonJay]

My 91 fox GL also got 40+ highway with regular gas.. but apparently changes to build safety requirements would make such a car illegal to sell today and the added weight cuts down on mileage.

[A. Patriot]

I had read that this car was projected to get close to 60 MPG. What happened?

[Red Badger]

Let’s say two cars are being considered.

Both are exactly alike, except one is gasoline powered and the other is Diesel powered.

Both have a 10 gallon tank.

Gasoline is $4.00 a gallon.

Diesel is $5.00 a gallon.

The gasoline model gets 40 mpg.

The Diesel model gets 50 mpg.

Gasoline miles per tank = 400 miles.

Diesel miles per tank = 500 miles.

Gasoline trip costs = $40.00

Diesel trip costs = $50.00

You go 100 miles farther for $10.00 in the Diesel.

That $10.00 would have bought 2.5 gallons of gasoline, that would have carried you 100 miles...........

So, as long as the DIFFERENCE in cost per gallon between DIESEL and GASOLINE is less than about $1 per, then you are ahead.
But remember the initial cost of the diesel car is higher than the gasoline car, but it will last much longer on the road because of the way it’s made........

[denydenydeny]

Tax credits for buying imports. The mind boggles at the Million$$ spent by unions to elect Democrats who voted to give taxpayer money to green imports!

This is exactly what you get when you use the tax code to make social policy instead of just raising revenue.

[Eska]

I had a few diesel Rabbits & Jettas years ago and they got pretty good mileage too. I thought I heard something about VW bringing out a 70 MPG diesel?

[PapaBear3625]

I remember....not too long ago,in fact....when diesel was noticeably cheaper (percentage-wise) than regular.Today the reverse is true.

Thank the EPA for that. Only "ultra-low-sulfur" diesel can be sold these days, which is why it's now more expensive than gasoline

[LetsRok]

Once the demand for diesel fuel increases, the price will come down. Diesal is a byproduct and not much is produced in relation to gasoline.

[Boundless]

> Tax credits for buying imports. The mind boggles ...

The DEMs, being such experts in auto tech, never imagined
that diesels would ever pass Tier2. Even as we speak, the
CARB in CA is trying to figure out how to move the goalposts
to undo this green diesel calamity.

> I had read that this car was projected to get close
> to 60 MPG. What happened?

Early reports turned out to be in Imperial gallons.

[Boundless]

> I wonder how much VW will add to the price-premium?

Essentially nothing. The list price is still the same
as I paid for a Jetta TDI wagon in 2002.

Now, with reports that this year’s US allotment is
already 100% subscribed, the dealers may be tacking
on thos euphemistic “regional market adjustments”.

[Boundless]

> But remember the initial cost of the diesel car is
> higher than the gasoline car, but it will last much
> longer on the road because of the way it’s made........

And has a dramatically higher resale value.

Replacement Cost is still the largest per-mile expense
on small and mid-size autos. Competently made diesels
have an advantage here, because you either get more
back on resale, or get many more years to drive it
into the ground.

[Virginia Ridgerunner]

Insetad of Jettas, VW should be focusing on higher-mileage Rabbit TDIs. I’m waiting for these to come out before I trade for my next commute car.