To qualify for the federal tax credit on battery storage technology, the battery must meet the following specific requirements:
- Capacity: The battery storage system must have a capacity of at least 3 kilowatt hours.
- Installation Location: The system must be installed in a dwelling unit located in the United States, and the dwelling unit must be used as a residence by the taxpayer. This includes principal residences and second homes but excludes rental properties.
- Usage: The battery storage technology must be used in connection with a dwelling unit.
- Credit Period: For installations placed in service after December 31, 2021, and before January 1, 2033, the tax credit is 30% of the costs.
There is no maximum size or price cap for the battery storage system to qualify for the 30% tax credit.
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