To claim the federal tax credit for battery storage technology:
- Verify eligibility requirements:
- Capacity: Minimum 3 kWh
- Installation: Must be in a U.S. residence (primary or secondary home, but not rentals)
- Timing: Credit applies to systems “placed in service” (installed and operational) during the tax year claimed
- Document expenses:
- Save receipts/invoices for the battery system, including:
- Equipment purchase
- Installation labor
- Wiring/ancillary components
- File IRS Form 5695:
- Complete Part II for residential energy credits
- Transfer the credit amount to Form 1040 when filing taxes
- Key details:
- Credit amount: 30% for systems installed 2021-2032
- No dollar maximum: The credit applies to the full system cost
- Retroactive claims: Systems installed since January 1, 2022, qualify for 30%
Example: For a $15,000 battery system installed in 2024, you’d claim $4,500 (30%) via Form 5695.
Pro Tip: Consult your contractor to confirm all components meet IRS requirements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-claim-the-tax-credit-for-battery-storage-technology/
