Rev. Rul. 78-170

Under the laws of the State of Ohio, elderly and disabled persons are provided credits against their cost of winter energy consumption.

In order to qualify for these credits an individual must (1) be a head of household, (2) be at least 65 years old or be totally and permanently disabled, and (3) have a total income of not more than $7,000.

The state law defines the term "household" as any dwelling unit, or unit in a multiple unit dwelling, to which utility services, energy or energy commodities are separately provided. The benefits are also extended to qualified occupants of house trailers.

The state law provides that qualified individuals who are customers of propane dealers and gas and electric companies will receive credits in the form of a 25 percent reduction on their monthly bills for energy consumption during the months of December 1977 through April 1978, and December 1978 through April 1979. The propane dealers and gas and electric companies will be reimbursed by the state for the credits granted to these qualified individuals. Qualified individuals who purchase their source of energy from suppliers other than those enumerated above and who are able to substantiate that they have expended at least the amount specified in the statute prior to February 1, 1978, will receive a cash payment equal to the specified amount from the state for the 1977-78 winter. The same procedure will be followed for the 1978-79 winter.

Held, the amounts paid under the laws of the State of Ohio, directly or indirectly to qualified individuals, are in the nature of relief payments made for the promotion of the general welfare, and are not includible in the gross incomes of such individuals for federal income tax purposes. See Rev. Rul. 74-74, 1974-1 C.B. 18, which holds similarly with respect to amounts paid to crime victims by the Crime Victims Compensation Board of the State of New York and Rev. Rul. 74-153, 1974-1 C.B. 20, regarding adoption payments made by the Maryland State Department of Social Services.