WKBT La Crosse, WI-NewsChannel 8-Cash-For-Clunkers: Eco-friendly Car Incentive

Reported by Kristen Elicerio

Cash-For-Clunkers: Eco-friendly Car Incentive

A proposed bill called "Cash for Clunkers" that would encourage people to trade in their old cars for more eco-friendly rides is on it's way to the U-S senate.

The cash for clunkers bill was designed in a effort to get rid of old, gas-guzzling vehicles.

The government would provide federal vouchers, up to $4,500 for people who trade-in their vehicles for ones that use less fuel and get better mileage.

In addition, it aims to give the struggling auto industry a sales boost.

Some critics of the bill say it doesn't boost fuel economy enough, and is too complicated.

"If we just had a more general incentive to move them to more fuel efficient cars, rather than specifically looking at what the government is calling clunkers, or what the industry is calling clunkers. There aren't that many vehicles that are old, that could be replaced with a newer vehicle that would qualify them for the tax credit," says Chris Schneider from Honda Motorwerks.

The government price tag of the proposed bill is about $4 billion.

The money would come from Energy Department funding, included in the already enacted $787 billion stimulus package.