To qualify for federal tax credits on battery storage installations, the following eligibility requirements apply:
- Capacity Requirements:
The battery storage system must have a minimum capacity of 3 kilowatt-hours (kWh). Most residential systems exceed this threshold (e.g., typical installations range near 10 kWh). - Installation Timeline:
Systems must be installed and operational between January 1, 2022, and December 31, 2032, to receive the 30% tax credit. The credit drops to 26% for installations in 2033 and 22% in 2034. - Property Eligibility:
- Residence Type: Applies to primary residences, second homes, or existing/new constructions in the U.S.
- Exclusions: Rental properties where the owner does not reside are ineligible. However, renters may claim the credit if they live in the property.
- Equipment and Labor:
- New Equipment: Only previously unused systems qualify.
- Covered Costs: Includes installation labor, wiring, and piping directly connecting the system to the home.
- Tax Documentation:
Claim the credit using IRS Form 5695. Consult a tax professional for specific guidance.
The 30% credit applies retroactively to eligible systems installed as early as January 2022, with no upper limit on system size or cost.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-battery-storage-tax-credits/
