President Obama signed the Clunker Voucher program into law. This program will give automobile dealerships that register for it the ability to give out $3500 or $4500 vouchers to individuals for use when they buy a new vehicle that has better fuel efficiency than the vehicle they’re getting rid of.
Spidell is reporting that they believe that the vouchers will be taxable as income under California law unless the legislature decides to conform to federal law. (Under the bill that President Obama signed, the vouchers are not taxable.) The chance of California complying given the current budget fiasco is essentially nil.