PG&E Clean Fuel Rebate

Forum|Forum|6 years ago
September 15, 2019
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Is $800 PG&E Clean Fuel Rebate taxable? It's under The Clean Fuel Rebate comes from a State of California program called the Low Carbon Fuel Standard.

Best answer by BillM223

This rebate appears to be taxable on the federal level.

The issue of rebates has been the source of much discussion for the last 50+ years. I will refer you to the Journal of Accountancy article here - https://www.journalofaccountancy.com/issues/2008/oct/tax_treatment_of_rebates_may_be_clearing_up.html.

The conclusion is that some rebates between seller and buyer may be excludible, but that third-party rebates - as this one is - does not appear to be excludible (i.e., non-taxable) in any case.

As for the concept that payments from a governmental or pseudo-governmental entity being non-taxable, let me say that even interest payments from the IRS (if the IRS holds on to your money for too long, they pay you interest) are taxable.

Note that the Clean Vehicle Rebate Project offers no advice on the matter, referring you instead to your own tax advisor. See https://cleanvehiclerebate.org/eng/faqs.

BillM223Answer

Level 15

This rebate appears to be taxable on the federal level.

The conclusion is that some rebates between seller and buyer may be excludible, but that third-party rebates - as this one is - does not appear to be excludible (i.e., non-taxable) in any case.

Note that the Clean Vehicle Rebate Project offers no advice on the matter, referring you instead to your own tax advisor. See https://cleanvehiclerebate.org/eng/faqs.

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