See this link : http://www.state.nj.us/treasury/taxation/irssaver.shtml
The IRS says that you need to report your rebate as income on your return if you itemized and claimed Real Estate Taxes in 2015, and got a tax benefit from the deduction. Just as you do with your State tax refund. Report this as Miscellaneous Other Income.
But this isn't taxable for your NJ return, so you'll need to take a subtraction for it when working on your state return.
http://www.state.nj.us/treasury/taxation/treatment03.shtml
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