The ability to claim the battery storage tax credit for a rented property depends on whether you use the property as a residence at least part-time:
- Landlords renting out properties do NOT qualify if they do not also use the property as a personal residence (even occasionally).
- Renters themselves CAN claim the credit if they live in the property (even part-time) and meet the eligibility criteria, including a battery capacity of ≥3 kWh, new equipment, and installation between 2022-2032.
The IRS explicitly excludes purely rental properties (non-residence use) from eligibility, while allowing credits for second homes or residences where the taxpayer lives periodically. For landlords who also personally use the property (e.g., a vacation home they rent out seasonally), the credit may apply if they meet residence requirements.
Summary:
- Your own residence or second home: Eligible.
- Purely rental property (no personal use): Ineligible.
- Renters living in the property: Eligible for their own systems.
Claim using IRS Form 5695 for the 30% credit on installation costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-the-battery-storage-tax-credit-if-i-rent-out-my-property/
