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mdmiller9
New Member

Do Solar Energy rebates count as income for the tax year in which they are received?

This is for a residential solar installation done in an area covered by Duke Energy in NC.
2 Replies
Bsch4477
Level 15

Do Solar Energy rebates count as income for the tax year in which they are received?

Rebates from your utility company: Typically, subsidies from your utility company are excluded from income tax returns. In these situations, the rebate for installing solar must be subtracted from your system cost before you can calculate your tax credit.

Opus 17
Level 15

Do Solar Energy rebates count as income for the tax year in which they are received?

A one-time rebate on the cost of installing a system is not taxable income.  If you qualify for the federal solar energy credit, you must reduce the price of the system by the amount of your local rebate so you only claim a credit on the net amount.

 

However, if you are receiving monthly or yearly checks based on the amount of energy you produce, that is taxable income, and you do not reduce the cost of your system when claiming any federal credit for the original installation. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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