'Cash-for-Clunkers' Passes House

The final House version would apply only to vehicles that averaged less than 18 mpg combined city and highway driving. $3,500 could be applied to a new light truck or van that was more fuel efficient than the old one by at least 4 mpg or $4,500 if the new vehicle is 10 mpg more efficient.

A similar bill is still being debated in the Senate, where the sticking point is funding. The House version calls for $4 billion in new spending tacked onto a war supplemental, while the Senate wants to take the money from the economic stimulus package. The House version would not be retroactive, so if you just bought a car it wouldn’t do you much good, and the program will expire after a year or when funding runs out.

President Barack Obama said he supports the bill but questions remain to be answered, and it is unclear what form the final bill will take since the Senate and House versions must be reconciled.

House OKs $4 Billion ‘Cash for Clunkers’ (CNNMoney)