What if I received a subsidy (e.g. an incentive, grant, or rebate) for my energy efficient home improvement or residential clean energy property costs?

If you received a subsidy from a public utility for the purchase or installation of an energy conservation product and that subsidy wasn't included in your gross income, you must reduce your costs for the product by the amount of that subsidy. This rule also applies if a third party (such as a contractor) receives the subsidy on your behalf.