Yes, you can combine federal tax credits with state-level incentives for battery storage systems.
The federal government offers a Residential Clean Energy Credit that provides a 30% tax credit on the cost of qualified battery storage technology installed in a residence from 2022 through 2032, with the battery system needing at least 3 kilowatt-hours of capacity to qualify. This credit comes from the Inflation Reduction Act and applies retroactively for systems placed in service after December 31, 2021.
On top of this federal credit, many states have their own incentives such as rebates, tax credits, or performance-based incentives for battery storage installations. Generally, these state incentives can be claimed in addition to the federal credit, as there is no federal restriction against combining them. This means you can reduce your overall costs significantly by taking advantage of both federal and state programs concurrently.
However, you should check the specific rules of your state’s incentives program, as some state programs may have particular eligibility criteria or requirements regarding stacking incentives. Also, be mindful that the total combined incentives may not exceed your total project cost.
In summary, federal tax credits like the 30% Residential Clean Energy Credit for battery storage can be combined with state-level incentives, often allowing for substantial savings when installing battery storage technology at your home.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-combine-federal-tax-credits-with-state-level-incentives-for-battery-storage/
