100% of subsidy
U.S. Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224
Phone: (800) 829-1040
Web Site: http://www.irs.gov
Section 136 of United States Code deems that the value of any subsidy provided (directly or indirectly) by a public utility to a customer for purchase or installation of any energy conservation measure be excluded from the customers gross income.
In the instance that a taxpayer claims a tax credit or deductions for the energy conservation property, the investment value used for the deduction or credit must be reduced by the value of the conservation subsidy (denial of double benefit).
Section 136 defines \'energy conservation measure\' as "any installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand with respect to a dwelling unit".