Tax Information for LEAP Rebates

We sincerely appreciate your participation in LEAP’s Home Performance with ENERGY STAR program and hope you are enjoying the greater comfort and lower bills that come with a better performing home.

As you may know, rebates customers received in this program for the home assessment and energy improvements were funded by the Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) program through the federal Stimulus package. There were three sources for LEAP’s EECBG grant dollars: BetterBuildings EECBG (funded the Home Energy Improvement Rebates), City of Charlottesville EECBG (Energy Assessment Rebate), and Albemarle County’s EECBG (Energy Assessment Rebate). Our state energy office’s rebates for energy efficiency and energy efficient appliances came from the state’s EECBG allocation.

The Home Energy Improvement rebate you received is meant to be considered a reduction in the purchase price of your home performance package of improvements. And as such, may not be subject to the federal income tax, according to federal guidance. A Home Energy Improvement rebate for a package which did not include appliances, however, might be considered income and thus subject to federal income tax. These improvements might have included:

• insulation and air sealing
• replacement windows, doors and skylights
• storm windows and doors

For concerned homeowners, we recommend the prudent path: that you speak with your accountant or tax counsel as to whether or not ultimately your Home Energy Improvement rebate would be considered taxable.

We will do our best to answer any additional questions you may have. Please call us at 434.227.4666.