Rebates from public utility companies for energy efficiency upgrades receive a personal tax exclusion and will not be taxed as part of your gross income by the U.S. government. More information can be found by reading Section 136 of the U.S. Tax Code. Qualifying upgrades include any measures taken to reduce electricity or gas consumption, or improve the management of energy demand.

Also, many states, such as California, offer a tax exclusion for solar energy systems. In California, certain solar energy systems installed by Dec. 31, 2016 are allowed property tax exclusion for 100 percent of the cost. Qualifying systems include solar space conditioning, solar water heating, active solar energy, solar process heating, photovoltaic and solar thermal electric systems, and solar mechanical energy.

On the contrary, rebates from state-run Home Performance programs are often taxable, and the amount of the rebate will be reported on a 1099 form. If you have any questions about the rebates you have received from programs such as Energy Upgrade California, you should seek the advice of a tax professional.