Is the cash for clunkers program different from the tax credits offered for purchasing fuel efficient vehicles?
Yes. The federal automobile tax credits are different from the CARS rebate program. Tax credits are issued by the IRS and are specifically for hybrid and alternative fuel based vehicles. The credit is based upon a formula determined by vehicle, weight, technology and fuel economy. The credit amount calculated is not directly subtracted from the price of the vehicle or added to a trade-in amount; rather, it is deducted from your overall taxable income reducing your overall tax bill. Conversely, the rebate program covers a broader range of fuel efficient vehicles, and the amount of the rebate is deducted from the price of the qualifying vehicle on the spot. If you are interested in reviewing a current list of cars and trucks eligible for tax incentives, visit www.fueleconomy.gov. Tell us again where our listeners can learn more about the program. Details about the program are available on the government-sponsored site www.cars.gov or by calling the program hotline at (866) CAR-7891. Addi
