701—34.16 (423) Rebates. Manufacturer’s rebates can be used to reduce the taxable purchase price of a vehicle.
	 34.16(1) To qualify as a manufacturer’s rebate for the reduction in the taxable price, all of the following elements must be present:
	  a.   	 A rebate must be a return to the purchaser of an amount that the purchaser would otherwise have paid;
	  b.   	 The rebate must be in the form of cash;
	  c.   	 The rebate must be offered by a manufacturer which is any person or entity that fabricates, assembles, or combines materials and parts to create a vehicle subject to registration in Iowa;
	  d.   	 The rebate must be given as part of a transaction between the manufacturer and the purchaser and must meet both of the following:
	 (1) 	 The rebate must originate from an entity acting in the capacity of a manufacturer of such vehicles when the rebate is offered. The rebate cannot be offered by a vehicle manufacturer engaging in other activities, such as a manufacturer acting in the capacity of a credit card issuer or a financing program;
	 (2) 	 The purchaser must be in the process of purchasing the vehicle at the time the rebate is given. The rebate cannot be given to a customer in a situation similar to the credit card rebate program, in which the customer earns the right to the rebate over a period of time. Purchase of the vehicle must occur simultaneously with the receipt of the rebate, and the rebate cannot be allowed unless the customer purchases the vehicle; and
	  e.   	 The rebate must be applied to the base purchase price of the vehicle.
	 34.16(2) Reserved.
This rule is intended to implement Iowa Code section 423.1(8).