Geothermal rebate - Form 5695

[Hoosier]

Taxpayer installs geothermal and meets the criteria to claim the Residential Energy Property Credit on Form 5695. However, the local utility company paid the taxpayer a $1,000 rebate for installing the system. Should the $1,000 be subtracted from the total cost of the geothermal system to calculate the entry on Form 5695 Line 4 - Qualified geothermal heat pump property costs?

[kathyc2]

My opinion is that if the rebate was from the manufacturer it should be netted. Since it's from an outside source, I probably wouldn't.

Don't forget to look awesome and remind your client to file for the GT deduction on their real estate bill.