American consumers thinking of buying next generation vehicles such as fuel cell cars or hybrid-electric models are in line for a series of tax incentives designed to drive up demand.

The Detroit News is reporting that the Senate is considering passing a new bill that could yield tax breaks of up to $4000 per owner.

The recent hike in petrol prices is thought to have accelerated the drive towards clean vehicles, with a bill that has been circulating around the legislature for over a year now potentially being pushed through.

The current tax system rewards hybrid purchasers with a $1500 rebate, while tax credits are also on offer for fuel cell vehicle owners - despite the fact that the technology has not been fully commercialised yet.

Now industry giants DaimlerChrysler and General Motors are reported to be pushing for similar breaks for diesel-powered vehicles, a market which they are seeking to develop in the US.

Under the proposals being considered the personal tax breaks would form part of a massive $140 billion corporate tax break over ten years.