Tax Incentive Makes Volkswagen Jetta TDI Even Sweeter

By Kevin Miller


US fans of diesel vehicles have eagerly awaited the introduction of the 2009 Volkswagen 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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Author: Kevin Miller

As Autosavant’s resident Swedophile, Kevin has an acute affinity for Saabs, with a mild case of Volvo-itis as well. Aside from covering most Saab-related news for Autosavant, Kevin also reviews cars and covers industry news. His “Great Drive” series, with maps and directions included, is a reader favorite.

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  1. Very, very good news. It’s about time the feds recognized that more miles per gallon at low emissions is a good thing, even if it doesn’t come from a hybrid.

  2. Yes, very good, but with diesel selling at a 20% higher price than gasoline in the States, it’s still a tough sell in a lot of ways. Diesel cars are like 70% of new car sales in Europe, but diesel fuel is cheaper than gasoline there, so it’s easy to see why.

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