@elbatexas wrote:
Do you have an irs citation for this. I have a US Department of Energy pamphlet suggesting you reduce it for utility rebates but not for state rebates. It then goes on to say you don't reduce it for State tax credits because the state credit reduces your federal income But, this is only in the case of itemized deductions. If you take the standard deduction, seems like you are out of luck. Thoughts?
I can't find anything quickly. The question is the source of the payment. You can only claim your out of pocket costs, that applies to every deduction and credit. If you get paid a direct rebate or payment by your utility, public utility commission, city or county government, etc. that must reduce your cost because that's money paid directly to you. A credit on your state income tax return doesn't directly reduce your cost, so it doesn't change your cost for your federal tax credit.
