Tax Credit Eligibility FAQ

A rebate received in a commercial context must usually be reported as taxable income by the recipient. A recipient who must report a rebate as income claims the gross amount paid for solar equipment as his "tax basis" in the equipment for purposes of calculating the commercial solar tax credit or Treasury cash grant.

Grants from state or local governments must ordinarily be reported as taxable income and do not reduce the tax basis for calculating the 30% tax credit for the equipment whose purchase price is paid in part with the grant.