Is the 2008 NJ Savers Rebate taxable either Federally or in NJ?

The saver's rebate is not taxable by NJ, but it is MAY be taxable by the IRS. If you deducted state income tax on your 2007 fderal income tax, and then receive a rebate on some of that amount, that rebate is taxable.

Here are links to an NJ site and also an IRS document that explains it:
Answers to Frequently Asked Questions - NJ Taxation
http://www.state.nj.us/treasury/taxa...ewsrelease.pdf