Stabenow Bill Trades Cash for Gas-Guzzlers
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MORE: Cash For Guzzlers A Good Start But...
Washington DC May 22, 2009; The AIADA newsletter reported that Sen. Debbie Stabenow of Michigan introduced cash-for-clunkers legislation on Thursday that would provide vouchers of up to $4,500 toward the purchase of a more fuel-efficient car or truck.
According to the Detroit Free Press, the legislation comes as an identical measure is being attached to climate legislation in the House. Just as in the House version, Stabenow's legislation—with Kansas Sen. Sam Brownback (R-Kan.) the primary cosponsor—doesn't differentiate between domestic and international vehicles when handing out vouchers.
But provisions that would allow for the swap of older, lower-mileage trucks and sport-utility vehicles is widely seen as helping domestic automakers in Detroit. In most cases, the voucher's worth depends on how many more miles to the gallon the new vehicle gets.
For instance, if you trade in a passenger car getting 18 mpg or less, you must purchase a new car getting at least 22 mpg If the new car gets at least 4 mpg more than the old car, the voucher is worth $3,500; if the new car gets 10 mpg or better, the voucher is worth $4,500.
Neither bill is expected to face final passage soon as Congress recesses for Memorial Day.
To read more about recent developments regarding scrappage legislation, click here.
