To claim the battery storage tax credit, you need to fill out IRS Form 5695, which is used for Residential Energy Credits. This form is where you report the expenses associated with the purchase and installation of qualified battery storage technology, which must have a capacity of at least 3 kilowatt hours.
Here are the steps to claim the credit:
- Document Expenses: Save receipts and invoices for all expenses related to the purchase, preparation, assembly, and installation of the battery storage system. You may need to contact your contractor for these documents.
- Complete IRS Form 5695: Use the instructions provided by the IRS to fill out the form accurately. This will help you determine the amount you can claim.
- Submit with Tax Return: Attach the completed Form 5695 to your annual tax return to claim the credit. It’s important to file the credit in the year the system is installed, not when it’s purchased if those dates differ.
For standalone energy storage systems not paired with solar, businesses or individuals might need to use IRS Form 3468 if applicable under different incentive programs like the Energy Storage Investment Tax Credit. However, Form 5695 is specifically used for residential energy credits, such as the battery storage tax credit described here.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-specific-forms-i-need-to-fill-out-to-claim-the-battery-storage-tax-credit/
