To qualify for federal tax credits, battery storage systems must meet the following specific eligibility criteria:
- Capacity Requirement: The battery storage system must have a capacity of at least 3 kilowatt-hours (kWh).
- Residential Use: The system must be installed in a dwelling unit located in the United States and used as a residence by the taxpayer. This includes principal residences and second homes, but not rental properties.
- Installation Period: The system must be “placed in service” after December 31, 2021, and before January 1, 2033, to qualify for the 30% tax credit. The credit rate changes after this period.
- Standalone Eligibility: Starting from 2023, standalone battery storage systems (not necessarily paired with solar panels) also qualify for the tax credit.
- Use of Credit: The tax credit is non-refundable, meaning it can only be used to reduce federal tax liability in the year the system is installed. It can be carried forward if not fully used in the initial year.
- System Newness: While not explicitly mentioned in the current context, generally, the system must be new and not previously used to qualify for most tax incentives.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-specific-eligibility-criteria-for-battery-storage-systems-to-qualify-for-federal-tax-credits/
