The Crisp system calculates tax before loyalty credit is applied.
This is the most conservative approach to reward program tax laws, which vary from state to state.

We recommend consulting your accountant on how reward program taxes should be handled for your state and business.

If you would like to calculate loyalty as a non-taxable sale you can do this when filling in your tax liability information on your state's tax portal.

There will be a line item titled non-taxable sales, or another similar name.
On this line enter the number under the payments section on the loyalty line.

Your state will deduct this amount from your sales number and adjust your taxes accordingly.