US Tax Policy Undercuts CA Water Conservation Push

Even before the current marathon drought, turf replacement subsidies have long been touted by the state government as a powerful way to get California homeowners to stop having water-guzzling lawns. But the federal government sees these subsidies as taxable income. This is from a recent Los Angeles Times report: Southern Californians who received cash rebates for replacing their lawns with drought-tolerant landscaping will soon get a federal tax form in the mail reporting the amount, but water officials said Thursday it is still not clear whether the reimbursement will be taxable. Officials from the Metropolitan Water District of Southern California — which funded a $340 million incentive program — say they are sending 1099 forms to turf rebate recipients of $600 or more and leaving reporting up to participants and their tax advisers.