The Residential Clean Energy Credit (30%) can be claimed for a battery storage system installed in 2023, even if you sell the home in 2024, provided you meet eligibility criteria during the installation year. Here’s the breakdown:
Eligibility Requirements
- Ownership and usage: You must have installed the system while owning and using the home as a residence (principal residence or second home) during the tax year you claim the credit. Rentals do not qualify.
- System specifications: The battery must have >=3 kWh capacity, be new, and meet IRS guidelines.
- Labor costs: Installation and preparation expenses are eligible.
Impact of Selling the Home
- No recapture: Unlike some tax credits, there’s no requirement to repay the credit if you sell the home later.
- Timing: The credit is claimed for the tax year the system was placed in service (2023 in this case), not when the home is sold.
Key Details
- Form 5695: Use this form to claim the credit.
- No income limits: The credit is uncapped (30% of total eligible costs).
Final Answer: Yes, you can claim the 30% tax credit for a 2023 installation if the system and home met IRS requirements in 2023, regardless of the 2024 sale.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-the-tax-credit-if-i-install-the-battery-storage-system-in-2023-but-sell-my-home-in-2024/
