What is the name of your state (only U.S. law)? Alaska
I'm in the 25% tax bracket. I installed a new boiler in 2009 at a cost of $12996. I received an Energy Rebate from the state for $8500. The state says this is income that will be reported to the IRS.
The IRS directions for Form 5695 Residential Energy Credits says:
"If you received a subsidy from a public utility for the
purchase or installation of an energy conservation product
and that subsidy was not included in your gross income,
you must reduce your cost for the product by the amount
of that subsidy before you compute your credit."
So if I compute my credit by subtracting the subsidy (12996-8500=4496 x 30%=1349) will I still have to report the $8500 as income?
I'm in the 25% tax bracket. I installed a new boiler in 2009 at a cost of $12996. I received an Energy Rebate from the state for $8500. The state says this is income that will be reported to the IRS.
The IRS directions for Form 5695 Residential Energy Credits says:
"If you received a subsidy from a public utility for the
purchase or installation of an energy conservation product
and that subsidy was not included in your gross income,
you must reduce your cost for the product by the amount
of that subsidy before you compute your credit."
So if I compute my credit by subtracting the subsidy (12996-8500=4496 x 30%=1349) will I still have to report the $8500 as income?
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