Sales Tax Rate Finder
Nebraska Taxation of Rebates Received Under the
“State Energy-Efficient Appliance Rebate Program”
The “State Energy-Efficient Appliance Rebate Program”, created under the American Recovery and Reinvestment Act of 2009 (ARRA), authorizes the Nebraska Energy Office (NEO) to register Nebraska retailers or contractors, based on certain eligibility guidelines. The registered retailers or contractors are authorized to issue Nebraska residential consumers up to two rebate claim forms on qualifying appliances purchased to replace used appliances of the same type. For details on which appliances qualify, who is a registered retailer or contractor, and available rebate amounts, see NEO’s Web site and the federal Department of Energy’s Web site.
Registered retailers and contractors will sell the qualifying appliances for the full sales amount and issue the customer a claim form for the State Energy-Efficient Appliance Rebate (ARRA Energy Star Rebate). Rebates ranging from $50 to $250 for qualifying appliances are then mailed to the customer on a first come, first served basis by NEO’s Fulfillment Center. Rebates are tentatively scheduled to become available in June 2010, continuing until the federal funding allocated to Nebraska of approximately $1.7 million is exhausted.
As provided in Neb. Rev. Stat. § 77-2701.35(2), the value of the rebate issued by the NEO does not reduce the sales price of the appliance. Sales tax must be collected by the registered retailer on the full sales price of the appliance. No refund will be granted to the customer for the amount of sales tax relating to the ARRA Energy Star Rebate.
The Internal Revenue Service has determined that rebates issued by the NEO under the ARRA Energy Star Rebate will be regarded as a reduction in the purchase price rather than taxable income. These rebates are treated in the same manner under Nebraska law. Therefore, the NEO is not required to issue Form 1099 to consumers to report the issuance of the ARRA Energy Star Rebates. Consumers must reduce their basis in the appliance by the amount of the rebate received to determine any federal income tax deduction or credit.