Residents to see tax implications for artificial turf

Southern California residents who decided to replace their grass with artificial turf could be taxed for the rebate they received from Metropolitan Water District (MWD). When MWD announced their $340 million dollar program to incentivize conservation, people began to flood the application process. The program was such a success that MWD had to provide the program with additional funds.

“Rebate programs are vital to conservation,” Bob Muir, spokesman for the Metropolitan District of California, told California Water News Daily. “Rebates have been incredible in how people are responding to the drought, which will have long lasting impacts for the region.”

While some residents were not expecting the 1099 form that will be mailed to them, MWD says the rebate may be considered taxable income by federal standards.

According to Muir, MWD is unclear about whether or not the turf rebates will be taxed; federal tax code excludes water conservation rebates from being considered tax-free, a loophole Muir says MWD is against.

“Right now, the federal tax code excludes water conservation. All conservation efforts should be treated equality,” Muir explained. “We believe water rebates should be tax-free.”

MWD is distributing 1099s to residents whose turf installation was more than $600, a threshold established by federal tax code. While MWD is unclear of the tax implications, they are encouraging each individual homeowner to consult their tax professional.