To claim the tax credit for battery storage in a second home, you will need to gather the following documents:
Required Documents
- Receipts and Invoices: Collect invoices and receipts for the purchase and installation of the battery storage system. Ensure that these documents include details about the cost, capacity (which must be at least 3 kilowatt-hours), and date of installation.
- Proof of Installation: Provide proof that the battery storage was installed and put into service at your second home in the United States.
- Proof of Residency: While not always necessary, having documentation showing that the property is used as a residence (even if it’s a second home) may be helpful in audits.
- Completed IRS Form 5695: This form is specifically designed for claiming residential energy credits, including those for battery storage technology. It will require you to calculate the credit based on the eligible expenses.
- Proof of Property Location: Ensure that documentation shows the property is located within the United States, as this is a requirement for the tax credit.
Eligibility Notes
- Second Homes Qualify: Second homes qualify for the tax credit, provided they are located in the United States.
- Rentals Do Not Qualify: If the property is a rental and not used as a residence by you, it does not qualify for the credit.
- Minimum Capacity Requirement: The battery storage system must have a capacity of at least 3 kilowatt-hours.
- Labor Costs Included: Labor costs for installation are eligible for the credit.
Ensure all documents are accurate and maintained securely in case of audits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-documents-do-i-need-to-claim-the-tax-credit-for-battery-storage-in-a-second-home/
