Is EFI/MassSave rebate taxable?

[tutconner]

In 2018 I replaced my furnace and water heater and got a $1100 rebate from EFI/MassSave. Is this $1100 taxable income on my federal tax return? Is it taxable on my Massachusetts tax return?

[BMcCalpin · Accepted solution]

The rebate is not considered taxable income.

If the equipment installed cost $4,000 to put in, the basis of the equipment is now $2,900 ($4,000 less rebate).  

It just reduced the cost basis of the equipment.