Eligibility Requirements for Federal Energy Storage Incentives
Overview
The federal government offers incentives for energy storage, primarily through the Residential Clean Energy Credit. This program provides a tax credit for homeowners who install qualifying energy storage systems.
Key Eligibility Requirements
- Residence Location: The home must be located in the United States and used as a residence by the taxpayer. It can include houses, apartments, mobile homes, and other dwelling types.
- Ownership and Residence: The tax credit is available for both homeowners and renters if they live in the property at least part of the year. Landlords cannot claim the credit unless they live in the home themselves.
- Eligible Property: Only new, previously unused energy storage systems qualify. Battery storage must have a capacity of at least 3 kilowatt-hours.
- Installation Period: The installation must occur between December 31, 2021, and December 31, 2032, to receive a 30% tax credit.
- Tax Obligation: To claim the credit, individuals must pay federal income taxes.
- Business Use: If the home is used partly for business, only the nonbusiness portion of the costs is eligible for the credit if the business use exceeds 20%.
Application Process
To claim the credit, homeowners must complete Form 5695 (Residential Energy Credits) and submit it with their annual tax return. Documentation of all expenses related to the purchase and installation of the energy storage system is required.
Additional State and Local Incentives
While federal incentives are available, some states and local governments offer additional programs like California’s Self-Generation Incentive Program (SGIP), which provides rebates for energy storage systems. These programs often prioritize low-income or medically vulnerable households.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-federal-energy-storage-incentives/
