Tuesday, August 5, 2008

Tax Incentive Makes Volkswagen Jetta TDI Even Sweeter

By Kevin Miller

08.06.2008


US fans of diesel vehicles have eagerly awaited the introduction of the 2009 Voklswagen Jetta TDI sedan and SportWagen. The vehicles' shared powertrain features clean diesel technology which is compliant with emission regulations in all 50 states. The vehicles come to market over a year after the last diesel powered Jetta was available in the United States.

Last week, Volkswagen announced that buyers of 2009 Jetta TDIs will be eligible for a $1300 Federal Income Tax Credit. The Internal Revenue Service issued a certification letter affirming that the vehicles qualify for the Advanced Lean Burn Technology Motor Vehicle income tax credit. That credit was previously available only to buyers of hybrid vehicles.

The Jetta TDI employs a 2.0 liter four-cylinder turbodiesel which produces 140 HP and 236 ft-lbs of torque. It earned an EPA fuel economy rating of 29 MPG city/40 MPG highway, though Volkswagen had an independent third party conduct "real-world" fuel economy testing and touts those results to be 38/44 city/highway. Of course, your results will vary.

The Jetta TDI sedan starts at 21,990, and the TDI SportWagen starts at $23,590. The $1300 tax credit will help offset the higher price of the diesel model compared with gasoline-powered Jettas, as the tax credit equals almost 6 percent of the base Jetta sedan's MSRP. Combined with the improved fuel economy compared to gasoline Jettas (even accounting for the price difference between gasoline and diesel), the tax credit helps make the Jetta TDI a sweet deal indeed.

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