The Car Allowance Rebate System (popularly known as “cash for clunkers”) was almost a victim of its own success. The program, which provides $3,500 or $4,500 vouchers that can be used toward the purchase or lease of a fuel-efficient new vehicle when an old “gas guzzler” is traded in, burned through its initial $1 billion funding well short of its projected expiration of November 1, 2009. On Friday, President Obama signed legislation that provides an additional $2 billion in funding for the program, an amount estimated to be enough to sustain current activity levels through the end of August.
For current information on the Cash for Clunkers program, see www.cars.gov.
Filed under: Tax
