Federal tax incentives for energy storage systems

What tax credits are available for energy efficient home upgrades?

Through 2032, federal income tax credits are available to homeowners, that will allow up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent.

What tax credits are available for energy projects in low-income communities?

In addition to the bonus for the Investment Tax Credit for projects in low-income communities, the Inflation Reduction Act: Provides a bonus credit of up to 10 percentage points for qualifying clean energy investments in energy communities.

Can you get a tax credit for a battery storage system?

In addition to the federal tax credit, several states have taken steps to help homeowners get battery storage systems with their solar installations. These incentives can be combined with the federal tax credit to reduce the total cost to own a battery down to a very manageable number.

Do energy storage projects qualify for a bonus rate?

Energy storage projects (i) not in service prior to Jan. 1, 2022, and (ii) on which construction begins prior to Jan. 29, 2023 (60 days after the IRS issued Notice 2022-61), qualify for the bonus rate regardless of compliance with the prevailing wage and apprenticeship requirements.

Do energy storage projects qualify for a new ITC?

Energy storage projects placed in service after Dec. 31, 2022, that satisfy a new domestic content requirement will be entitled to a 10% additional ITC (2% for base credit).

What are energy efficient home improvement credits?

These energy efficient home improvement credits are available for 30% of costs - up to $2,000 - and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year. Claim 30% up to $1,200 for these qualifying energy property costs and certain energy efficient home improvements.