Are PV system rebates taxable income? [RE-wrenches]

[Doug Pratt]

Hi Joel,

  If the CEC rebate check is cut directly to the customer, the State of
California *will* withhold state income tax on the rebate amount. A
sleazy deal if I heard one.

  If the CEC rebate check is cut to the retailer, no income tax is due.
The retailer can either credit the customer up front, and then pocket
the rebate check when it arrives (a nice deal for the customer, and good
insurance that the job will be properly finished). Or the retailer can
deposit the CEC check, and then write their own company check to the
customer for the rebate amount. Our company has pretty much taken the
"we'll handle all the CEC paperwork, and save you the income tax"
approach with all but the smallest systems.

  To the best of my knowledge, no rebates have to be reported to the
Feds as income, and no Federal income taxes are due.

-Doug Pratt
Real Goods Technical Editor

-----Original Message-----
From: Joel Davidson [mailto:joeldavidson at earthlink.net] 
Sent: Saturday, July 27, 2002 1:16 PM
To: RE-wrenches at topica.com
Subject: Are PV system rebates taxable income? [RE-wrenches]

A customer got a 1099 from the California Energy Commission and asked me
if he had to pay taxes on his PV system rebate. I think not. Internal
Revenue Code 136 says that energy conservation subsidies provided by
public utilities are excluded from gross income.

I found several references to IRC 136 when I searched Yahoo at
http://google.yahoo.com/bin/query?p=%22energy+conservation+subsidies%22&
hc=0&hs=0

http://www.nysscpa.org/cpajournal/old/14038936.htm
http://www4.law.cornell.edu/uscode/26/136.html
http://www.unclefed.com/IRS-Forms/1997/p525.pdf
http://www.ftb.ca.gov/other/legis/01_02absb/sb31x_040501.pdf
http://envirotext.eh.doe.gov/data/uscode/26/136.html
http://www.massdor.com/rul_reg/tir/tir98_15.htm
...and so on.

Does anyone have a reference that states that PV system buydown rebates
are taxable income or are not excluded from gross income?

- - - -
To send a message: RE-wrenches at topica.com

Archive of previous messages: http://www.topica.com/lists/RE-wrenches/

List rules & etiquette: http://www.mrsharkey.com/wrenches/etiquete.htm

Check out participant bios: www.mrsharkey.com/wrenches/index.html

Hosted by Home Power magazine

Moderator: michael.welch at homepower.com

==^================================================================
This email was sent to: michael.welch at homepower.com

EASY UNSUBSCRIBE click here: http://topica.com/u/?bz8Qcs.bz9JC9
Or send an email to: RE-wrenches-unsubscribe at topica.com

T O P I C A -- Register now to manage your mail!
http://www.topica.com/partner/tag02/register
==^================================================================