Is CT EV rebate considered as Federal income?

[tarikadeepak]

I purchased an electric vehicle in 2023 and received CT EV rebate under CHEAPR program.  Is that rebate a taxable income for the Fed. income tax?  If so, where in 1040 should I enter the amount of the state EV rebate?

[Vanessa A]

No, it is not considered income. 

(Edited 4/8/24 @ 1:16PM PST) @tarikdeepak

[tarikadeepak]

Thank you @Vanessa A ! TT didn’t ask me for the purchase price when I entered the vehicle details to claim federal tax credit, did I do something wrong?

[Vanessa A]

No, actually, you didn't.  The credit from the state is not income.  You would reduce the basis in your vehicle.  For the home energy credits, you do enter your cost and reduce your basis.