anyone ever heard of a possible tax deduction due to alternative fuel? Is this only for the bio fuels or does this also apply to Diesels as well? Just heard someone mention it and thought I would ask? -J

 

ive heard the same thing, the deduction is for any diesel that can run a bio fuel. it is only a one year deduction, but it is the same as if we owned little hybrid cars.

 

This only applies to new vehicle purchases.

 

Is this in every state, or is it just state specific?

 

it's federal...not state specific


my truck is new to me...think that counts ??

 

So since our trucks can run on bio diesel I take it they qualify for the tax deduction?

 

If you bought it this year you can--maybe. My understanding is the common rails don't get as good of mpgs as a '02 model. If this is the case '05 and '06 aren't eligible.
Here are the specifics. Sort weird they keep mentioning gasoline when they are talking about diesels.

Federal Clean Diesel Tax Credit
Clean diesel cars, pickups and SUVs purchased between January 1, 2006 and December 31, 2010 are eligible for a new federal tax credit. To qualify, new diesel vehicles must:

Be powered by an internal combustion engine which:
Designed to operate primarily using more air than is necessary for complete combustion of the fuel
Incorporates direct injection
Achieves a minimum 25% increase in city fuel economy compared to a similar 2002 vehicle (inertia weight class)
Vehicle weighing 6000 pounds or less must meet Tier 2 Bin 5 emissions
Vehicle weighing more than 6000 pounds but not more than 8500 pounds must meet Tier 2 Bin 8 emissions
The credit amount for passenger cars and light duty trucks ranges from $250 up to $3400 depending on achieving certain performance standards for improved fuel economy and fuel conservation (gallons saved) over the life of the vehicle.

Fuel economy credit can range from $400 to $2400 with a minimum threshold of a 25% improvement as compared to 2002 model year city fuel economy (based on vehicle inertia weight class – see below)
Conservation credit can range from $250 - $1000 dollars with a minimum threshold of at least 1200 gallons of gasoline saved over the life of a vehicle driven 120,000 miles.
Phase-out period

Each automotive manufacturer is limited to selling 60,000 vehicles (hybrid or diesel) that qualify for the advanced vehicle credit. In the first calendar quarter following the sale of the 60,000th qualifying vehicle, a phase-out period begins. The applicable percentage of the incentive during the phase out period is as follows:

50% for the first 2 calendar quarters of the phase-out period.
25% for the 3rd and 4th calendar quarters of the phase-out period, and
0% thereafter
Credit Amount for Passenger Cars and Light Duty Trucks

Fuel Economy Credit
Vehicles achieving a fuel economy of (percentage 2002 model year fuel economy):
Credit Amount

At least 125% but less than 150%
$400

At least 150% but less than 175%
$800

At least 175% but less than 200%
$1200

At least 200% but less than 225%
$1600

At least 225% but less than 250%
$2000

At least 250%
$2400


Conservation Credit
Vehicles achieving a lifetime fuel savings of (in gallons of gasoline):
Credit Amount

At least 1200 but less than 1800
$250

At least 1800 but less than 2400
$500

At least 2400 but less than 3000
$750

At least 3000
$1000


Baseline Fuel Economy Levels
Passenger Cars


Vehicle inertia weight class:
2002 model fuel economy (in city):

1500 or 1750 lbs
45.2 mpg

2000 lbs
39.6 mpg

2250 lbs
35.2 mpg

2500 lbs
31.7 mpg

2750 lbs
28.8 mpg

3000 lbs
26.4 mpg

3500 lbs
22.6 mpg

4000 lbs
19.8 mpg

4500 lbs
17.6 mpg

5000 lbs
15.9 mpg

5500 lbs
14.4 mpg

6000 lbs
13.2 mpg

6500 lbs
12.2 mpg

7000 to 8500 lbs
11.3 mpg


Light Trucks
1500 or 1750 lbs
39.4 mpg

2000 lbs
35.2 mpg

2250 lbs
31.8 mpg

2500 lbs
29.0 mpg

2750 lbs
26.8 mpg

3000 lbs
24.9 mpg

3500 lbs
21.8 mpg

4000 lbs
19.4 mpg

4500 lbs
17.6 mpg

5000 lbs
16.1 mpg

5500 lbs
14.8 mpg

6000 lbs
13.7 mpg

6500 lbs
12.8 mpg

7000 to 8500 lbs
12.1 mpg

 

I take it the new 06s weigh more than 7k