The Illinois Department of Revenue has amended an Illinois retailers’ tax regulation to clarify the sales tax treatment of automobile rebates and dealer incentives. For example, if a dealer accepts a manufacturer’s rebate provided by a customer as part of the payment for the purchase of an automobile or other type of vehicle, the amount of the reimbursement or payment paid by the manufacturer to the dealer is part of the taxable gross receipts received by the dealer. For dealer incentives, effective for sales made on and after July 1, 2008, the tax treatment depends upon whether the dealer receives a payment from a source other than the purchaser that is conditioned upon the retail sale of an automobile. If a dealer receives a payment as an incentive, the amount of that reimbursement or payment is part of the taxable gross receipts received by the dealer for the sale of that automobile. However, if a dealer receives payment in exchange for the purchase of an automobile from a supplier or manufacturer, and that payment is not conditioned upon the sale of that automobile to a retail customer, the amount of that payment is not part of the taxable gross receipts received the by the dealer for the retail sale of that automobile. Examples of various types of automobile rebates and dealer incentives are provided in the amendment. Additional rules and regulations apply. (86 III. Adm. Code 130.2125, Illinois Department of Revenue)