To determine if your battery storage technology qualifies for the federal tax credit, follow these steps:
- Check the Installation Date: The current 30% tax credit applies to battery storage systems placed in service after December 31, 2021, and before January 1, 2033.
- Verify the Capacity Requirement: Ensure the battery storage system has a minimum capacity of 3 kilowatt-hours (kWh).
- Usage Requirements: The battery storage system must be installed in a dwelling unit located in the United States that is used as a residence by the taxpayer. This includes principal residences and second homes but excludes rentals.
- Eligibility for Labor Costs: Labor costs associated with the installation of the battery storage system are also eligible for the tax credit.
- Claim the Credit: You will need to use IRS Form 5695 to claim the Residential Clean Energy Credit.
By meeting these criteria, you can qualify for the 30% federal tax credit for your battery storage technology.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-determine-if-my-battery-storage-technology-qualifies-for-the-credit/
