In 2019, we installed a solar system on our home in Maryland (our primary residence).
The Maryland Energy Administration has a rebate program for solar projects ($1,000).
https://energy.maryland.gov/residential/Pages/incentives/CleanEnergyGrants.aspx
The rebate does not come from the local utility, its from the state. We received the $1,000 check in 2019.
We did not receive a 1099-G from the state of Maryland. I called the state tax office, and the way the program is accounted for, they don't issue a 1099-G. I still think its taxable (at least at the Federal level). What is the right way to account for the $1,000?
I'm also claiming the "Solar Tax Credit" at the federal level (the investment tax credit), 30% of the cost of the solar system. From my own research, it seems the best (most correct) way to account for this would be to subtract the $1000 rebate from the overall cost of the system, and then claim the credit on that amount.
For example: if the cost of the system was $10,000, I would claim a 30% credit on $9,000 (credit of $2,700, instead of $3,000).
The alternative would be to claim the 30% credit on all $10,000, and then include the $1,000 as income. I can't figure out how to do this in TurboTax.
