You can combine the federal battery storage tax credit with other energy-related tax credits, but there are some important details to consider:
- The battery storage tax credit is part of the Residential Clean Energy Credit (often referred to as the Section 25D credit), which covers 30% of the cost of qualified battery storage systems installed from 2022 through 2032, subject to certain capacity requirements (at least 3 kilowatt hours).
- This tax credit applies to battery storage even if it is not installed in conjunction with a solar system, providing flexibility to claim it as a standalone credit.
- You can claim the battery storage credit alongside other residential clean energy credits (such as solar panels, solar water heaters, geothermal heat pumps, and wind turbines) because they fall under the same Residential Clean Energy Credit umbrella, reported using IRS Form 5695.
- However, rental properties do not qualify for this credit, only the taxpayer’s principal or second homes located in the U.S. qualify.
- There is no maximum size or price limit on the battery systems to qualify for the 30% credit—it applies regardless of brand, size, or manufacturer.
- When filing taxes, you generally use Form 5695 to claim the Residential Clean Energy Credit for battery storage and other eligible clean energy property. If you have multiple eligible technologies, you combine the costs on Form 5695 to calculate your total credit.
In summary, yes, you can combine the battery storage tax credit with other energy-related tax credits under the Residential Clean Energy Credit, and claim a combined 30% credit on the total qualified costs of the battery system plus other eligible clean energy property installed in your home.
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