Is a cash rebate for a smart thermostat from my energy company taxable at the federal and state (MN) level?

[TomD8]

[revised]  You'll find a detailed discussion of the topic in this web reference from a CPA journal: http://archives.cpajournal.com/old/13928356.htm

Bottom line (assuming the article is still correct): If the cash rebate is from the utility company and not from the product's manufacturer or dealer, it is taxable.  But if the rebate is in the form of a rate reduction or a credit on the utility bill, it is not taxable.

A cash rebate from the product's dealer or manufacturer is not taxable.

[cebuszmann]

Even if the product was purchased at a retailer but it was the gas/energy company that cut the rebate check? The rebate documents say it may be taxable and to check with a tax pro. Thanks!

[TomD8]

You're correct, that does make a difference.  See my revised answer above.

[cebuszmann]

Thank you!