Retailers in Nebraska have asked how to handle the $40 coupons provided to consumers by the National Telecommunications and Information section of the U.S. Department of Commerce. These coupons were authorized by Congress so that consumers without cable or satellite access or digital televisions could purchase converters to allow their television sets to continue to receive TV signals after February 17, 2009, when broadcasters convert their signals to the mandated digital format.
Under Nebraska Sales and Use Tax Regulation 1-037.03A, the value of a coupon which is accepted by the retailer as part of the selling price, and upon which the retailer is reimbursed for the amount of the coupon by a third-party, cannot be subtracted from the selling price when determining the taxable amount of the sale. This is the rule even when the third party making the reimbursement is the Federal government.