A.6. Yes, you may access rebates under the federal program rules. However, the costs rebated to you are unallowable as project costs. You must report the rebate to your MEC project manager. A tax credit or rebate from any source reduces the allowable project costs in the same way. Here is an example showing the impact of accessing a rebate.
Project A takes place in a jurisdiction where there are utility rebates for vehicle electrification. The rebate is $2500 per installed electric charging station. The project sponsor installs 10 charging stations at a cost of $15,000 each, for a total of $150,000. The sponsor’s project meets the rebate specifications, and the rebate value is $25,000. The grant cost-share agreement is 35% federal share and 65% sponsor share.
Without the rebate (project sponsor determines not to access the rebate):
35% of $150,000 = $52,500 federal reimbursement
65% of $150,000 = $97,500 project sponsor’s share
With the rebate (project sponsor uses rebate to reduce the grant costs):
$150,000 – $25,000 rebate = $125,000 allowable costs
35% of $125,000 = $43,750 federal reimbursement
65% of $125,000 = $81,250 project sponsor’s share