The state of California has made it clear that water conservation rebates are not taxable. However, current federal IRS tax rules are not clear. The IRS has made it clear that CCWD is required to issue 1099 forms to individuals and companies that receive $600 or more in rebates in a calendar year. Therefore, CCWD now requires program participants that are approved to receive $600 or more in rebates in a calendar year to complete an IRS W-9 form and submit it to CCWD before receiving their rebate. Then in January of each year CCWD will issue 1099 forms to those customers that received $600 or more in rebates. Note, water agencies, state officials and members of Congress continue to work with federal tax officials to request that they treat water conservation rebates the same as they do the tax-free energy efficiency rebates. For more information, see Potential Federal Tax on Water Conservation Rebates.