25D: Energy Storage Tax Credit (Home Batteries)
Rebate Overview
Overview
The 25D Energy Storage Tax Credit is a federal tax credit that offers homeowners a 30% reduction in the cost of installing battery storage systems. This incentive is available for systems installed before December 31, 2025. To claim the credit, complete Form 5695 when filing your 2025 tax return in early 2026.
Benefits
Installing a battery storage system can enhance your home's energy resilience by providing backup power during outages. It also allows you to store energy during off-peak hours and use it during peak times, potentially lowering your electricity bills. Additionally, adopting this technology supports the transition to cleaner energy sources, contributing to environmental sustainability.
More Information
- Eligible systems must have a capacity of at least 3 kilowatt-hours.
- The credit covers 30% of the total cost, including equipment and installation expenses.
- Both primary and secondary residences qualify for this credit; rental properties do not.
- To claim the credit, file IRS Form 5695 for the tax year when the system is installed.
- The credit is non-refundable but can be carried forward to future tax years if it exceeds your tax liability.
Details
- Expiration date: December 31, 2025
- Incentive type: Tax Credit
- Maximum Percent: 30%
- Link: More details
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