Eligibility Requirements for the Battery Storage Tax Credit:
To qualify for the battery storage tax credit, the following requirements must be met:
- Location and Use: The battery storage system must be installed and used in a dwelling unit located in the United States. It can be a principal residence or a second home, but rentals do not qualify unless the landlord lives there.
- Capacity: The battery storage system must have a capacity of at least 3 kilowatt-hours.
- Date of Installation: The system must be installed and placed in service after December 31, 2021, and before January 1, 2033, to qualify for the maximum 30% tax credit. For installations between January 1, 2033, and January 1, 2035, the credit will be 26%, and for those between January 1, 2034, and January 1, 2035, it will be 22%.
- New and Unused: The battery storage system must be new and previously unused.
- Eligible Costs: Eligible costs include the purchase price of the equipment and labor costs associated with its installation, including onsite preparation, assembly, and necessary piping and wiring.
- Claiming the Credit: The tax credit is claimed using IRS Form 5695.
Additional Notes:
- The tax credit applies to both new and existing homes, as well as homes under construction.
- There is no maximum size or price limit for qualifying battery storage systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-the-battery-storage-tax-credit/
