Heat Pump Water Heater Rebate. Write off before or after cost?

Forum|Forum|2 years ago
February 15, 2024
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Received a Rebate for installing a heat pump water heater. Can I write off on my taxes the total amount or minus the rebate recevied from my local energy company?

MayaD

Per IRS: When calculating your credit, you may need to subtract subsidies, rebates, or other financial incentives from your qualified property expenses because they're considered a purchase price adjustment.

Rebates are subtracted from qualified expenses if all of these apply:

The rebate is based on the cost of the property
It comes from someone connected to the sale such as the manufacturer, distributor, seller or installer
It isn't given as payment for services you provide

irs.gov

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