My friend just purchased a 70D and told me that the $7500 was taken off the sale price. I thought it was $7500 that reduces your taxable income. But he told me his list price was around $80k but they took off $10,000 (federal $7500 + CA $2500) and his sales price ended up being $70k. I thought the only cash back was the CA state of $2500 which they send as a check in the mail. The federal $7500 is not reduced off the sales price.