For a second home, several energy-related improvements can qualify for federal energy storage incentives. These incentives include:
- Energy Efficient Home Improvement Credit (Section 25C):
- Eligible Improvements: Exterior doors, windows, skylights, insulation materials, central air conditioners, water heaters, furnaces, boilers, heat pumps, biomass stoves, and boilers.
- Credit Details: 30% of the cost, up to $1,200 annually, with no lifetime limit. Specific items like heat pumps and biomass stoves have a separate $2,000 annual limit.
- Residential Clean Energy Property Credit (Section 25D):
- Eligible Improvements:
- Solar, Wind, and Geothermal Power Generation: Includes solar panels and geothermal heat pumps.
- Solar Water Heaters
- Fuel Cells: Must be for a principal residence.
- Battery Storage Technologies: Requires a capacity of at least 3 kilowatt-hours.
- Credit Details: 30% of the cost through 2032, with no annual or lifetime limit for most items. Fuel cells have a specific capacity-based limit.
- Eligible Improvements:
Both credits can be claimed for second homes, provided they are used as residences. Rentals do not qualify for battery storage credits but may be eligible for other improvements under certain conditions. Always verify the current eligibility criteria and reporting requirements for claiming these credits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-specific-improvements-to-a-second-home-qualify-for-federal-energy-storage-incentives/
