TX & NY – Energy Star Rebate Programs

***UPDATE: 

SC – Says even though you can’t deduct the rebate to be received from the sales price to calculate sales tax, you CAN deduct any “salvage” value amount that the retailer allows from the sales price.  Temporary Revenue Ruling #10-4 March 1, 2010.

This isn’t directly sales tax related, although both New York and Texas(see Note: at bottom of this webpage) thought it important to mention sales tax in the treatment of the appliance purchases and the pending rebates that purchasers are entitled to receive.   They’re calling it “Cash for Clunkers… on Appliances.”

And for those of you consumers (or retailers) wanting to know:  Sales Tax is to be paid upon the purchase price of the item sans any pending rebate.  And, the rebate received will be a single lump sum figure - there will be no tax added to the rebate to reimburse you for the sales tax on the rebate amount.

NY rebate program information here:  NY originally scheduled their rebate program to only last one week in mid-February (12th-21st), but the program has been extended until “available funding runs out.”

TX rebate program information here:  TX is coinciding their rebate with earth day and will begin their rebate program on April 16th through April 25th, 2010 (any votes on whether TX will extend as NY did?).  The TX SECO office will be administering the rebates.  Do not mistake this rebate program for the Energy Star Sales Tax Holiday that TX is offering over Memorial Day weekend.  This holiday will allow the retailer to not charge sales tax on qualifying products (more than just appliances). 

Because this is a program funded by the Federal Government as part of the American Recovery and Reinvestment Act of 2009, these rebate programs are popping up all over the country.  I expect the sales tax treatment to be the same everywhere since it’s a rebate being sent directly to the consumer and not to the retailer who passes on the savings.

See here for other states’ program dates and information.

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