Client invested in solar panels which qualify for the 30% energy credit. the state electric co gave him a good rebate for installing these panels. does this amount come off the price of the panels, or just reported as other income and we can take the 30% off the whole cost?
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the instructions for the form will tell you whether the state credit is deducted or not.Believe nothing you have not personally researched and verified. -
JenMo - I am sure you have "googled" and researched - quick peek I found one answer
If the State rebate is taxable and a possible 1099G received then you would use the Gross cost and apply the Federal Tax Credit - if the State Rebate was non-taxable you would reduce the Gross Cost and then apply the Fed tax Credit
That would make sense. Guess you need to find out first, if the State Rebate is taxable.
Hope this helps
SandyComment
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I am further ahead to report the rebate and take the credit on the whole amount. I have googled, haven't found much, the electric co sent a 1099 for the credits they purchased, but I only have the stub of the rebate. when a grant is received by farmer from the state or usda, I report and then take a deduction for the item it was for ( a well, or fencing, ), but usually we have received a 1099 for the amount.Comment
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