CA rebates not taxable for feds or state

[EVDRIVER]

This is going to go similar to locating Barack's birth certificate

Actually, anyone that writes a letter to the IRS will get a response, I really don't care to bother but I did call.

 

[SanDust]

If it were from Nissan it would be and it would not be taxable. My city solar incentive (rebate), reduced the cost and was fully taxable. You can look at taxes any way you choose but it still will not change an official policy. For anyone in denial about this just call an IRS tax specialist or I suppose one could tell the IRS how to designate it and see how that goes

As can be seen by the fact that my state incentive for the PV system was definitely not taxable, whether a payment is taxable is always dependent on the specific facts of the grant. In this regard the best guidance is the fact they you're not getting a 1099-G and there is little to no downside in going with this determination.

 

[SanDust]

Yes they do, but since the IRS tax specialist asked me to put this question in writing as he could not say either way I doubt TT is more of an expert in this area. When someone shows a ruling on this in writing from the IRS the answer will be definitive as it is very subjective.

You have this right. The reality is that the politicians have constructed a tax system which is so complicated the IRS can't afford to hire anyone who understands it. Given the politics of the issue it's hard to imagine the Service making a fuss, especially since grants to individuals (as opposed to businesses) are rarely found to be taxable.