Mercedes, VW Clean Diesels Get Tax Credit

Mercedes-Benz new line of Bluetec vehicles will join Volkswagen's Jetta TDI as clean-diesel vehicles that qualify for the IRS's alternative-powertrain tax credit. It used to be that just hybrid vehicles qualified for the credit, but the advance of clean-diesel technology has allowed the two German automakers to secure the coveted tax break for their diesel lines.

The credits only count toward the first 60,000 units sold, and they vary depending on a vehicle's fuel economy. For instance, the Benz ML320 Bluetec qualifies for a $900 rebate, but step up to the GL320 and you're looking at a $1,800 credit. The Jetta TDI is on sale now, and the Bluetec line will hit showrooms in October.

Do these tax credits make it any more likely that you will consider a diesel engine in your next car? While the price of gas has come down to a national average of about $3.80 a gallon as of today, diesel remains high — more than $4.50 a gallon. How would this affect your look at a diesel option?

All Mercedes and VW Clean Diesels Earn Tax Credit (AutoblogGreen)

Comments

The tax credits will certainly help their chances in the US market. However, as a matter of public policy, I don't think it's wise to give subsidies to a technology that increases demand and subsequently the price of Diesel fuel, hurting our professional truckers and raising the price of all goods moved by truck. Adding more diesel burning vehicles will also potentially hurt all of us who have to breathe the hazardous fine particulate pollution emitted by diesel cars, which one University study shows is killing thousands of people in the U.K. every year.

It was the trucking industry that kept low sulfur fuel away from the pumps and continuing to spew higher emissions than necessary.

Love 'em or hate 'em, we need those truckers to keep our country supplied. In some parts of the US, diesel fuel is as high as $5.30 per gallon right now. Adding more diesel vehicles will push those prices higher and we'll all see higher prices on the goods we buy. It would be better to see federal subsidies going to people who can produce large amounts of biodiesel fuel, and then have the auto manufacturers warranty their new clean diesels to run on it, instead of limiting these new cars to five percent biodiesel.

Wish we had the same tax breaks here in the UK. Instead Browns mob increase tax on the high emission vehicles whilst leaving giving no relief to the greener rides

I have no qualms about truckers paying through the nose for fuel. Shipping by truck, dirty trucks no less, is extremely bad for the environment and our society. Rail is much more efficient for long haul moves.

I hope diesel stays at $4.50-5 a gallon. If consumers have to pay more for corn grown 2000 miles away then so be it.

Q: "Do these tax credits make it any more likely that you will consider a diesel engine in your next car?"

A: No. The price & availability of diesel fuel needs to be on par with gasoline before I would consider a diesel car.

Today diesel cars and heavy duty pick-ups make up about 3 percent of all new vehicle registrations,and have a virtually invisible impact on diesel fuel demand relative to commercial trucks. So it would be unlikely that more diesel cars would contribute to higher fuel prices by a sudden spike in demand. As for emissions, new diesel cars are meeting the same emissions standards as gasoline cars, and have particulate filters, catalysts etc that virtually eliminate emissions. Since diesels are 20-40 percent more fuel efficient, that's lowering the demand for petroleum over a gasoline vehicle, not increasing the demand.