Volkswagen has announced that buyers of the Jetta TDI sedan and SportWagen in the U.S. are eligible for a $1,300 tax credit that’s normally reserved for hybrid vehicles. The Internal Revenue Service (IRS) has issued a certification letter affirming that the Jetta TDI qualifies for America’s Advanced Lean Burn Technology Motor Vehicle income tax credit, which the agency says is applicable because of the car’s impressive fuel economy rating.

The Environmental Protection Agency (EPA) rates the Jetta TDI at 29mpg (8.11L/100km) in the city and 40mpg (5.88L/100km) on the highway. By comparison, the Toyota Prius, which the EPA rates as the most fuel-efficient vehicle on the market, scores a fuel economy rating of 48mpg in the city (4.9L/100km) and 45mpg (5.22L/100km) on the highway.

Pricing for the Jetta TDI starts at $21,990 for the sedan and $23,590 for the SportWagen, and when combined with the $1,300 tax credit makes the oil-burner a very competitive option in the fuel-miser segment.

“The $1,300 tax credit provides an even greater value to the upcoming Jetta TDI sedan and SportWagen,” said Volkswagen U.S. COO Mark Barnes. “Our clean diesel vehicles offer consumers the fuel efficiency that they’re looking for while providing power, utility, performance, safety and excellent value.”