-- The manufacturer's suggested retail price cannot exceed $45,000.

-- You will not receive money directly from the government. The dealer will apply the qualifying credit toward the purchase price and then apply to NHTSA for reimbursement. NHTSA is setting up a system to register dealers.

-- Under the law, participating dealers have to offer the credit in addition to any rebates or discounts offered.

-- Dealers are prohibited from charging a fee to participate in the program.

-- You may trade in or buy either a domestic or a foreign vehicle.

-- When you trade in your gas guzzler, the dealer is required to destroy it. Under this program your trade-in is only worth the scrap value. You do not get a trade-in allowance. Clearly, if the value of your trade-in is worth more than the qualifying cash credit, it may not be worth participating.

-- Concerned about the tax implication? Don't be. The law specifically says the cash credit won't be treated as income. It is, however, considered income for the dealer. Additionally, using this credit doesn't negate using other state and federal tax incentives geared toward fuel-efficient vehicles. For example, you can use it and still get the federal tax credit for purchasing a hybrid. (For more information on the tax credit go to www.fueleconomy.gov/Feg/tax_hybrid.shtml.)

As for the so-called more fuel-efficient requirement, new passenger automobiles must have a combined fuel economy value of at least 22 miles per gallon. For certain new trucks and sport utility vehicles, the combined fuel economy value has to be at least 18 miles per gallon. Some other trucks only need to get 15 miles per gallon.

And, as if the program wasn't flawed enough, unfortunately consumers can use the credit toward leasing a new vehicle provided the lease period is at least five years.

Oh goody, our federal government has now given people an incentive to stay in a cycle of car debt.