According to both the Minnesota Department of Revenue and the AARP Tax Foundation Tax experts, the 1099 MISC received by taxpayers in the amount of $2500 from the State of MN, the $2500 IS taxable for both Federal and State. There is no line item on the M1M because there is no subtraction for the EV rebate.
There is a way to do the workaround (as explained) to remove the $2500 as taxable income, but the rebate is taxable.
