The trade-in program, officially called "iPhone Reuse and Recycling Program” will be ran in conjunction with BrightStar Corp, who will be assisting in creating a trade-in value and handling the US based recycling program.
Apple will be accepting iPhone 3G, iPhone 3GS, iPhone 4, iPhone 4S, and iPhone 5, in exchange for credit towards a new iPhone purchase. It will determine the value of the device with BrightStar based on its overall condition, screen and button quality, as well as whether or not the device has undergone any kind of water damage. The original sources say the value of the credit will range from between $120 and $250, depending on the above factors.
Other stipulations include that customers will need to use the credit at the same time as the trade-in and that it must be used towards a new iPhone on a contract. You won't be able to use the credit towards anything else in the store.
As many have speculated, Apple has launched the program ahead of its new line of iPhones rumored to be officially revealed in just a few short weeks from now.