We are passing on an important letter we received from the PA Sunshine Program regarding 1099-Misc forms from the state. Please take a copy of this letter with you when you meet with your tax adviser this spring.
January 2, 2012
Dear PA Sunshine Installers,
RE: 1099-MISC Information for your customers
The Office of Energy and Technology Deployment is providing the following for informational purposes. The department is not authorized to offer tax advice. Please review this information with your tax professional or appropriate taxing authority.
Many tax payers will have a variety of situations when it comes to Federal Taxes. It is appropriate to contact the IRS or visit www.IRS.gov or your personal tax preparer to consult about individual situations.
A review of the applicable rulings of the Internal Revenue Service has indicated that the rebate is federally taxable and 1099-Misc forms are required.
According to www.IRS.gov in a case where the rebate is taxable as income, when filing for the 30% Federal Tax credit you will use the entire cost of the system, before the rebate.
In some cases where a rebate is not taxable as income you would have to deduct the amount of the rebate from the cost of the system before calculating the federal credit.
For PA State Income tax purposes the PA Sunshine Rebate is not taxable income. It can be considered as capital improvement to property as relates to purchase and sale of that property. Additional information regarding PA State income taxes is available from their website https://revenue-pa.custhelp.com
With regard to Local taxes the consumer should contact their individual taxing district for their local taxes as to what is considered income in their locality.
This information was gathered by the PA Sunshine Program after consulting several sources. This is not intended as tax advice.
PA Sunshine Team
For questions, concerns, or to submit missing information contact: RAfirstname.lastname@example.org
For copies of the program guidelines, required forms, AMR dates, and additional information please visit: www.depweb.state.pa.us/pasunshine