Taxable Grant Payments for Environmentally Related Programs Policy
Grants made by State agencies to subsidize energy financing projects to conserve or produce energy for residential property or "Section 38" property and re-forestation payments should be reported on a Form 1099-G. The purpose of this reporting is to ensure taxpayers claiming credits on their personal income tax returns for energy and re-forestation payments did indeed receive such payments from a State agency. All such payments should be reported regardless of the amount.