The US Government has been offering tax credits (alternative-powertrain tax credit) of varying amounts over the past few years for those who purchased Hybrid vehicles, and those credits were typically reserved for the more popular gas-electric models such as the Toyota Prius, but with increasing technology in diesel engine efficiency, the Internal Revenue Service has begun offering similar credits for new diesel owners.

It was no surprise when the government began issuing credits for the Volkswagen Jetta TDI, but it was announced in early August that likely all of the new diesel powered V-Dubs heading stateside will qualify for the Alternative Motor Vehicle Credit standards of the IRS. Along with the Volkswagens, Mercedes Benz will also have a handful of their new Bluetec diesel powered models accompanied by the IRS tax credit, and these amounts vary from vehicle to vehicle, with models such as the GL320 giving their new owners an $1800 dollar break!

These additions to the vehicle list available for the tax credit did not include just diesels, as several more hybrids were added, with the Ford Escape and Mercury Mariner 2WD models joining the list that continues to expand as hybrid technology begins to reach all types of vehicles.