MOUNT VERNON — The federal government’s “Cash For Clunkers” program is now over and, at least in terms of the number of people taking advantage of it, it has been considered a success.

Those who took advantage of the program received vouchers as incentive to trade in older, less fuel-efficient cars for newer, greener, more fuel-efficient cars. These incentives ranged from $3,500 to $4,500 to be applied to the purchase of the new car.

The clunkers had to be in “tradable” condition, get 18 mpg or less, and have to have been manufactured in 1984 or later. Additionally, the car had to have been owned by the trader for at least one year.

There is one aspect to the program, however, that many people have not considered: Is the voucher money taxable? The short answer is no. However, there are always long answers to just about any question.

In short, there is no federal tax on the money under most circumstances. The consumer does not get the voucher directly; it is transferred electronically to the dealership and is considered as the trade-in value of the car. The vouchers are not treated as taxable income by the federal government.

Think of the voucher value as taking the place of the trade-in value. However, if the trade-in vehicle has a greater market value than the voucher value, then it may not be to your financial benefit to utilize the voucher program unless the after-tax benefits are greater. Consult a tax professional to make sure what you choose is best for your situation.

On the state level it is a different situation. The consumer is taxed on the amount. The money, whether one wants to call it a voucher, rebate or whatever, is considered to be part of the base price, according to Bev. Emrisko of Fredericktown Chevrolet.

“On the buyer’s order it states $34,500, [for example], at the top of the order,” she said. “That’s the cash sale price of the vehicle. Then as you go down it adds document fees or whatever. And then title fees and registration fees and your sales tax. Then at the very bottom there is a subtotal and then it deducts any down payments any incentives or any rebates. Then at the very bottom line is the balance. So yes, [the $4,500] would be taxed.”

This all pertains to personal use vehicles. In other instances there may be situations where the money is subject to tax, either state or federal.

As always, if one is not sure about his or her situation, he or she should consult a tax specialist.