Box 6 on form 1099-G is Taxable Grants. By grant, that means you received something of value that you don't have to pay back, sort of like a gift. Grant income is reported as Other Income on your tax return.
If the income was associated with a business or investment, related expenses would be deductible. But since the income is associated with personal property, the value of your auto is not deductible in my opinion, since losses on personal items are not deductible, accept in the case of casualty or theft.
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