The specific requirements for the battery portion of the federal tax credit under the Inflation Reduction Act (IRA) are as follows:
- The battery storage system must be installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
- The battery storage technology must have a capacity of at least 3 kilowatt hours (kWh).
- There are no restrictions on the maximum size, price, brand, or manufacturer of the battery system.
- The battery system can qualify for a 30% tax credit on the cost of installation if placed in service between January 1, 2022, and December 31, 2032.
- After 2032, the tax credit percentage steps down to 26% in 2033, then to 22% in 2034, and the credit will be unavailable from 2035 onward.
- This tax credit applies even if the battery is not installed alongside a solar system.
- The tax credit is part of the Residential Clean Energy Credit and can be used to reduce your tax liability, with the ability to carry forward any unused credit.
In summary, any residential battery storage system in the U.S. of 3 kWh or greater installed between 2022 and 2032 qualifies for a 30% federal tax credit without size or brand limits.
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