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posted Jun 1, 2019 11:07:07 AM

Is EFI/MassSave rebate taxable?

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?

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1 Best answer
Level 13
Jun 1, 2019 11:07:10 AM

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.

1 Replies
Level 13
Jun 1, 2019 11:07:10 AM

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.