To claim tax credits for battery storage across multiple homes, follow this process:
1. Eligibility Verification
Ensure each home:
- Qualifies as a residence: Applies to primary and secondary homes, but not rental properties unless you also reside there.
- Uses eligible systems: Battery storage must be “qualified clean energy property” with ≥3 kWh capacity and meet IRS criteria (e.g., no dual-use systems like swimming pool heaters).
2. Documentation
For each property:
- Collect invoices showing battery/installation costs
- Note installation dates (credit applies only to systems operational in the tax year claimed)
3. Form 5695 Completion
- File separate forms for each property if:
- Homes have different ownership structures (e.g., jointly owned vacation home + individual-owned primary home)
- You need to allocate costs between co-owners (see joint occupancy rules below)
- Combine credits on one form only if:
- All systems were installed at the same primary/secondary home in one tax year
- You’re sole owner of all properties
4. Joint Occupancy Rules
For co-owned homes (non-spouse):
- Split maximum qualifying costs proportionally based on each owner’s contribution
- Example: For a $20,000 system shared by two owners (60%/40% split), credit basis = $16,670 (max allowed) × ownership percentage
5. Submission
Attach all Forms 5695 to your 1040 tax return, applying the total credit against your federal tax liability.
Key Limitations
- 30% credit applies to combined battery + installation costs
- No upper limit for battery-specific claims (unlike solar panels’ $1,333/kW cap)
- Credit rolls forward if tax liability < credit amount (non-refundable)
Consult a tax professional for properties with complex ownership structures or mixed-use (residential/rental) scenarios.
Note: While search results don’t explicitly address secondary homes, IRS rules typically allow credits for primary + one secondary residence. Rentals generally don’t qualify unless owner-occupied.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-is-the-process-for-claiming-credits-for-multiple-homes-with-battery-storage/
