Yes, labor costs for battery storage installation can be included in the federal tax credit. According to IRS guidelines and related provisions, the residential clean energy credit covers 30% of qualified expenses, which explicitly include:
- Labor costs for onsite preparation, assembly, or original installation of the battery storage system.
- Piping and wiring directly related to the installation.
- The battery storage unit itself and associated components.
The credit applies to both equipment and labor costs, provided the system meets the eligibility criteria (e.g., minimum 3 kWh capacity for installations after 2022, as noted in the context of your question). There is no maximum credit limit for eligible expenses, though the taxpayer must use the property as a U.S. residence.
For clarity, the credit amount is calculated as 30% of total qualified expenses (equipment + labor), not based on kilowatt-hour capacity for residential installations. The Domestic Content Bonus Credit mentioned in other contexts applies to commercial projects and doesn’t affect residential eligibility for the labor cost inclusion.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-include-labor-costs-in-the-tax-credit-for-battery-storage-installation/
