Unfortunately, yes. Turf rebates are considered taxable income because they are considered to be “benefits” by the IRS. Many homeowners and businesses are surprised to learn that they owe taxes on these rebates.
Any rebate you receive from a government agency for replacing your lawn with artificial turf is taxable. That includes rebates from utility companies for the artificial turf and installation.
What if I received the rebate for something other than artificial turf?
Many times, the rebate is given for a different reason than installing artificial turf. If that’s the case, you should consult with your tax adviser to see if the rebate is taxable to you.
The best thing to do is to get the rebate in the form of a check made out to you. Then you can decide how to use the money.
However, if you are concerned about paying taxes on the rebate, you may want to try to get the rebate in the form of a cashier’s check. That way, you can be sure to use the money on your artificial turf project without worrying about taxes.
You can find cashier’s checks at your local bank.
What If I Don’t Pay the Taxes on the Rebate?
If you don’t pay the taxes you owe on the rebate, you can be prosecuted for tax fraud. Your rebate may be revoked, and you could be made to pay back taxes and penalties.