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Clean Diesel Tax Credits


The newest vehicles offering advanced lean-burn clean diesel technology now qualify for a tax credit similar to what hybrid owners have been privy to, in accordance with the Alternative Motor Vehicle Credit and the Internal Revenue Service. A tax credit is a specific dollar amount that is deducted directly off the amount of federal income tax that you owe at the end of the year, lessening your tax obligation. And just as the hybrid tax credit helps to offset the hybrid premium, this federal tax credit helps recoup the added cost of clean diesel technology.

Current Diesel Tax Credits:

  • 2009 Audi Q7 3.0-liter TDI – $1,150
  • 2009 BMW X5 xDrive35d – $1,800
  • 2009 BMW 335d Sedan- $900
  • 2009 Mercedes-Benz GL320 BLUETEC – $1,800
  • 2009 Mercedes-Benz R320 BLUETEC – $1,550
  • 2009 Mercedes-Benz ML320 BLUETEC – $900
  • 2009 VW Jetta Sedan 2.0-liter TDI – manual & automatic – $1,300
  • 2009 VW Sportwagen 2.0-liter TDI manual & automatic – $1,300

Additionally, some individual states offer their own tax credits, but they do vary, so it’s a good idea to check into whether your state offers other clean diesel incentives. And give your insurance company a call–many offer discounts to hybrid and/or clean diesel owners.

Please note: This information is not provided as tax advice and should not be relied upon as such. Remember to consult your tax advisor and check the for tax advice pertaining to the tax credit and the phaseout period.