American drivers who purchase newer, cleaner-burning diesel cars, trucks and SUVs will soon be eligible for the same kind of tax incentives as purchasers of gasoline-hybrid electric vehicles under a new national energy plan expected to be signed into law soon by President George W. Bush. Along with hybrids, clean diesel vehicles offer a fuel sipping alternative that is 20 to 40 percent more efficient than gasoline alternatives, according to the Diesel Technology Forum (DTF).

Beginning January 1, 2006, the new law allows consumers who purchase some new diesel-powered cars, light trucks and SUVs to be eligible for up to $3,400 in tax credits based on the weight, fuel efficiency rating and emissions level of the vehicle, as determined by the U.S. Environmental Protection Agency. The credit is available through December 31, 2010.

Last month J.D. Power and Associates reported that diesel and hybrid vehicles are expected to garner 11 percent of U.S. auto sales by 2012 -- with the diesel market increasing from 3 percent market share in 2004 to 7.5 percent by that date. According to R.L. Polk data compiled by DTF, diesels have already seen 56 percent market growth over the past five years with the introduction of four new models in 2004 alone (Jeep Liberty CRD, Mercedes E- 320 CDI, and Volkswagen Touareg and Passat). This is in addition to the continuing popularity of diesel engine options in medium- and heavy-duty pickups.