DC 2010: Would a federal diesel tax rebate be in order? Diesel coalition thinks so

Filed under: Diesel, Hybrid, Legislation and Policy, EDTA Conference, USA, Washington DC Auto Show

Last year, BorgWarner and Robert Bosch LLC founded the U.S. Coalition for Advanced Diesel Cars. For the first anniversary party, the group is present in the EDTA advanced technology section of the Washington Auto Show to announce three new menbers - Tenneco, Dow Automotive and Umicore - and to explain that the latest diesel vehicles are clean, available today and need to stop being the ignored child in federal green vehicle policy.

Scott Gallett, vice president of marketing and public relations for BorgWarner, told AutoblogGreen that the U.S. Coalition for Advanced Diesel Cars is about more than simply promoting diesel in the U.S. Yes, it is U.S.-focused and it’s pro-clean diesel, but it’s specifically about passenger vehicles and it’s only an advocacy group, not an educational organization, and lobbies to give diesel a level playing field against other technologies.

Specifically, the group is working on the consumer tax credit that applies to hybrid and other lean burn vehicles. The tax break is currently available but it is being phased out and no longer applies to some popular models, The value of that tax credit is based on how that vehicle performs in the city, which “is not really technologically neutral,” Gallett said. At the very least, the Coalition is asking that the credit be based on a vehicle’s city and highway miles per gallon rating. Gallett doesn’t fault the lawmakers for this situation - the law was written for hybrids, which perform better in the city, after all. “I think it was just missed,” he said.

The other side of the tax law they want to go after is the discrepancy at the pump, where diesel taxes are 33 percent higher than gasoline taxes (diesel is federally taxed at 24.4 cents per gallon, gasoline at 18.4 cents per gallon). Gallett said:

There’s a good reason why it’s like that. In the past, fuel prices and taxes went to repair roads, and they still do. Diesel was used only in large commercial trucks, which have a little more wear and tear on the roads, so they should pay more to have the roads maintained. That all makes sense. Now, though, there is clean diesel available in passenger cars.

The Coalition’s proposal is to bring back a federal tax return rebate similar to a rebate that was available in the 1980s (worth, say, $400 a year for driving a diesel car). Gallett said that, for the most part, when lawmakers learn about the disparity, they are receptive to adjusting the laws, but just when and how things will change is unclear. Since the five members of the Coalition supply parts to automakers for all sorts of powertrains, Gallett said:

We’re not trying to have some special push for diesels. We don’t think it needs it. We think if you make the playing field level, consumers will vote and diesel will play its proper role in the U.S. market.

More details after the jump.

Continue reading DC 2010: Would a federal diesel tax rebate be in order? Diesel coalition thinks so

DC 2010: Would a federal diesel tax rebate be in order? Diesel coalition thinks so originally appeared on Autoblog Green on Thu, 28 Jan 2010 11:54:00 EST. Please see our terms for use of feeds.

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