New regulations tighten the way plug-in hybrid fuel efficiency and CO2 emissions are calculated, potentially leading to higher taxes for company car drivers.
Some vehicles are at risk of losing company car tax breaks as the way plug-in hybrid (PHEV) fuel efficiency and CO2 emissions are calculated changed on 1 January. Those reforms follow long-term criticisms about PHEVs’ published fuel economy figures failing to reflect real-world performance, which in turn undermines their contribution to cutting manufacturers’ and fleets’ CO2 output. PHEVs’ efficiency is calculated by testing its electric range, then its fuel consumption in hybrid mode.
The electric range is used to produce a “utility factor”, a percentage of its total mileage that will be done on battery power. The longer the range, the lower the car’s CO2 emissions, though this assumes drivers plug them in, and real-world data gathered by the European Environment Agency suggests this isn’t always happening. Across a sample of 373,552 petrol PHEVs, drivers averaged tailpipe CO2 emissions of 134g/km against a published 38g/km – a 254% gap. Diesel PHEVs fared even worse, averaging 155g/km or 326% more CO2 than the 34g/km brochure average. The new ‘Euro 6e-bis’ test standard is designed to close that gap, by adjusting the utility factor to assume a much lower share of electric driving. In turn, PHEVs will need to offer a much longer electric range to get a significant reduction in CO2 emissions. Euro 6e-bis applies to new models launched from 1 January 2025, and all new car and van registrations 12 months later. Manufacturers have until 31 December 2025 to re-test their entire line-up, which means published CO2 emissions will change through the year. Increases can be sizeable. The International Council on Clean Transportation (ICCT) says CO2 emissions for a PHEV with a 70km (42-mile) electric range could more than double, from 45g/km to 96g/k
AUTOMOTIVE PLUG-IN HYBRIDS COMPANY CAR TAX EMISSIONS TEST CO2 FUEL EFFICIENCY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Washington Governor Proposes Tax on Billionaires to Plug Budget GapOutgoing Washington Governor Jay Inslee is proposing a new tax on personal wealth over $100 million to address a budget shortfall.
Read more »
2025 Tax Filing Season Brings Lower Increase in Tax Brackets and Standard DeductionsThe IRS is increasing its tax brackets by about 2.75% for both individual and married filers in tax year 2025. Standard deductions are also increasing, but at a slower rate than in recent years. This news comes alongside a 2.5% cost-of-living adjustment for Social Security recipients, which is also lower than previous years.
Read more »
Chicago Budget Avoids Property Tax Hike But Implements Other Tax IncreasesThe 2025 Chicago budget avoids a major property tax increase, but instead implements a range of new taxes and fees to fill a billion-dollar budget gap. Alderman Scott Waguespack criticizes the plan, saying it will burden everyone and fails to address underlying financial issues.
Read more »
Delco residents face property tax hike after council approves 23% increaseCouncil members in Delaware County voted to increase property taxes by 23% with only one member against the increase.
Read more »
Face It: Two-Face's Best Line Needs to Pop Up in the DCUTwo-Face 3 variant cover feature
Read more »
Laura Barlow: Face-to-face GP appointments petition hits 100,000The mother-of-three 'could have lived for longer' had she been seen face-to-face, her husband believes.
Read more »