New Law Gives Tax Incentives
August 20, 2005
Filed under Trailer News
American drivers who purchase newer, cleaner-burning diesel vehicles 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. 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).
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. 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. The
Diesel Technology Forum represents manufacturers of engines, fuel and emissions control
For more information about the Forum, visit www.dieselforum.org.