Are incentives (rebates, discounts, coupons, etc.) taxable?

  • Incentives are taxable if the retailer receives reimbursement (e.g., manufacturer’s rebate, employee discounts).
  • Incentives are not taxable if the retailer does not receive reimbursement from any source.

See Illinois Administrative Code, Title 86, Section  130.401 and  130.2125 for more information.

If you have additional inquiries, you may submit them to the Questions, Comments, or Request form.