Home Energy Efficiency Rebates Nixed as Taxable Income, IRS Says

The Department of Treasury and the IRS released new guidance on the tax treatment of energy-efficient property and improvement purchases.

Announcement 2024-19 says amounts received from the Department of Energy home energy rebate programs won’t be taxed as income and instead will be counted as a reduction in the price paid for the eligible upgrades and projects.

But taxpayers will have to reduce the basis of the property when they sell it by the amount of the rebate, the guidance says.