Hi Tom,
I have a similar question. It looks like you gave 2 different responses so I’m a little confused. Is this the correct response
1. Yes. The rebate is regarded as a reduction in the purchase price of the home and is not taxable income to the buyer.
2. No. Logically follows from (1).
Here's an IRS letter on the topic: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-wd/0721013.pdf">https://www.irs.gov/pub/irs-wd/0721013.pdf</a>
Note that a 1099 should NOT be issued to the buyer for the rebate amount.
