@rkrkrkCA So far the IRS has allowed all green energy rebates to not be taxable income and all middle class rebates. The IRS historically has not taxed green energy nor have they taxed any middle class incentive rebates nor any other similar community incentive rebates. The requirement of a 1099 is just that any amounts over $600 require it. Based on history of IRS treatments and historical determination letters this would not be considered income. Even cc rebates if applied to specific purchases are not rebates, only those that are given for total purchases.
WASHINGTON — The Department of Treasury and the Internal Revenue Service today issued Announcement 2024-19PDF that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.
Generally, taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income on their tax returns, however they will need to reduce the basis of the property when they sell it by the amount of the rebate.
The Inflation Reduction Act (IRA) statutory language describes performance-based incentives and electrification product subsidies as “rebates.” IRS even issued a determination letter which is not law but, can be relied upon:
Announcement 2024-19 provides that amounts received from the Department of Energy (DOE) home energy rebate programs funded through the IRA will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects. Accordingly, the consumer that receives an IRA rebate will not be required to report the value of the rebate as income.
Additional information about energy-related tax benefits under the Inflation Reduction Act, such as energy efficient homes, can be found on IRS.gov.
Another one:
https://www.irs.gov/pub/irs-drop/rp-23-27.pdf
https://www.irs.gov/pub/irs-drop/n-24-30.pdf
The IRS has consistently not required taxation of any rebates for green energy nor any rebates for betterment of society.
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