Can I claim the tax credit if my battery storage system is used in a second home

Can I claim the tax credit if my battery storage system is used in a second home

Yes, you can claim the Residential Clean Energy Credit for a battery storage system installed in a second home, provided it meets the following requirements:

Eligibility Criteria

  • Second homes qualify: The property does not need to be your primary residence.
  • Minimum capacity: The battery storage system must have a capacity of at least 3 kilowatt-hours.
  • Installation timeline: The system must be installed and operational between January 1, 2022, and December 31, 2032, to qualify for the 30% credit.
  • Rentals excluded: The credit does not apply to properties used solely as rentals.

Additional Requirements

  • New equipment: The battery storage system must be newly installed and previously unused.
  • Labor costs included: Qualified expenses include installation, wiring, and preparation work.

You cannot claim the credit if the battery system is installed in a rental property you do not personally use as a residence. For existing batteries being replaced, eligibility depends on whether the new system meets the “new and previously unused” requirement.

Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-the-tax-credit-if-my-battery-storage-system-is-used-in-a-second-home/

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