Wednesday, June 10, 2009
The United States House of Representatives passed a bill that would give consumers vouchers to turn in gas guzzling vehicles and buy new cars that are more fuel efficient. Clunkers eligible for the program must get 18 miles per gallon, or less, in combined city/highway mileage. There are $3,500 subsidies that can be used toward purchasing cars and vans that are more fuel efficient than the older clunkers by four miles per gallon. There is a bigger $4,500 subsidy that can be used toward purchasing vehicles that are more fuel efficient than the older car by 10 miles per gallon. However, cars that are older than 25 years are not eligible to be traded in for credit. The bill supported by President Obama faces an uphill battle to pass in the United States Senate.
Read more here at CNN Money.