Battery Storage Tax Credit

[JimmySasquatch]

Not a tax expert, but it appears the Lightnings could qualify for the 30% uncapped Battery Storage Tax credit.

Do we have any tax accountants here?

https://zendure.com/blogs/news/guide-to-the-ira-battery-storage-tax-credit-in-2023#:~:text=Do Batteries Qualify for the,minimum capacity of 3 kWh.

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[Pioneer74]

To qualify for the 30% tax credit, battery storage must be:

-Installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer

 

[Maquis]

There was a previous thread on this. I think the consensus was that parking your truck in the garage does not meet the definition of “installed.”

@TaxmanHog ?

 

[BBB]

It does say portable batts qualify so why would not a truck?


<<Beginning on January 1, 2023, standalone battery storage (batteries that aren't connected to solar panels) will also qualify for the 30% Residential Clean Energy Credit.


So if you only purchase some batteries for energy backup, don't worry, you also can have opportunity for this apply if meet the requirements that we're going through below.>>>

 

[Zaptor]

Nope. Guidance on this is clear. Double dipping, plus there's no breakout cost of the battery... even if it *did* somehow qualify, it would be for 30% of the price of the *battery*, not the whole truck.

You *can* do anything you want on a tax return, and the IRS *can* audit you and take that refund money back!

Zap

 

[TaxmanHog]

I'm not an accountant, I was a Revenue Officer aka collector aka leg breaker in mob parlance.

I'd think the portable part is with reference to systems like EcoFlow, which I have.... if it's installed in conjunction with a smart home panel and also has solar feed capability then it would qualify, these units can be made portable and used stand alone, but I think its primary intent is a semi fixed energy storage device.

Extending these concepts to a BEV with a home integration system that has solar inputs might seem to fit, but IMHO it still fails the test, as the solar doesn't directly charge the batteries in a BEV as it would in my EcoFlow system.

I wouldn't take the aggressive tax position that it qualifies, if your accountants thinks it does, be prepared for a challenge.

 

[JimmySasquatch]

I read they changed the requirement that requires the battery to be charged from solar. That’s why I thought a BEV may qualify if you have the home integration.

 

[TaxmanHog]

I read they changed the requirement that requires the battery to be charged from solar. That’s why I thought a BEV may qualify if you have the home integration.

I don't keep up on these aspects, if you have citations we can read it would help speed up the validation.

 

[JimmySasquatch]

Slightly before January 1, 2023, on August 16, 2022, Congress passed the Inflation Reduction Act of 2022. On page 131 of that Act, Congress added language to the law to give a tax credit to stand-alone batteries and made that amendment effective for January 1, 2023, installations and later (until the tax credit ends).

Here's the law before the battery language got added: https://uscode.house.gov/view.xhtml...q=granuleid:USC-2016-title26-section25D&num=0

Here's the law after the battery language got added: https://uscode.house.gov/view.xhtml...q=granuleid:USC-2021-title26-section25D&num=0

Notice that subsection (a)(6) changed from "the qualified biomass fuel property expenditures" to "the qualified battery storage technology expenditures," The details about battery size and location are in the post-amendment version of (d)(6).

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