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Diesel engines are on their way to becoming mainstream in America. Today’s diesels offer better fuel economy than their gasoline cousins, and pollution-reducing technologies that are helping diesel shed its dirty image. But they are typically more expensive than gasoline-powered equivalents. The IRS, however, is starting to close that price gap.

Currently, all diesel-powered Volkswagen and Mercedes-Benz vehicles sold in the U.S. are eligible for some from of tax credit.

Autoblog explains, "The diesels have been designated as advanced lean-burn-technology vehicles that meet the Alternative Motor Vehicle Credit standards of the IRS."

The credit had been allowed in the past only for hybrid and natural-gas powered vehicles, but the Orlando Sentinel reports, "The Internal Revenue Service has issued a certification letter affirming that the vehicles qualify for the ‘Advanced Lean Burn Technology Motor Vehicle’ credit."

The value of the credit depends on the vehicle chosen. For example, Wired reports, "Volkswagen of America has announced that owners of the Jetta TDI sedan and SportWagen will be eligible for a $1,300 federal income tax credit." With that credit applied, the diesel Jetta is "only about $700 more expensive than the gasoline version," though the diesel model gets an EPA rated 29/40 mpg, compared to 21/29 for gasoline-powered Jettas.

"In the case of Mercedes, the ML320 qualifies for $900 while the GL320 is good for $1,800," Autoblog notes.

Only the first 60,000 vehicles sold by each manufacturer are available for this particular credit. The same credit has expired for Toyota and Honda vehicles. Cars.com reports that hybrids manufactured by GM, Ford and Nissan still qualify for the credits. BMW has plans to bring several diesel models to the U.S. later this year, including a diesel edition of its popular 3-Series, which may also qualify.

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