Will states or payors be required to issue 1099 forms to consumers who receive rebates?
DOE received the following guidance from the IRS: “The Internal Revenue Service will treat payments to consumers funded by the $300,000,000 ARRA appropriation (ARRA ENERGY STAR rebates) as reductions in the purchase price of the purchased product rather than income. Consequently, consumers must reduce the adjusted basis of property acquired with an ARRA ENERGY STAR rebate by its amount and must not treat that amount as an expenditure in determining any federal income tax deduction or credit.
