Inflation Reduction Act: Battery-Enabled Appliance Tax Credit
Rebate Overview
Overview
The Inflation Reduction Act: Battery-Enabled Appliance Tax Credit is a tax credit that allows homeowners to deduct 30% of the cost of installing qualified battery storage systems in their homes. This incentive applies to systems installed between 2022 and 2032. Upgrades completed before December 31, 2025, can be claimed as a credit using Form 5695 on 2025 tax returns, filed in early 2026. Cooking appliances like Copper and Impulse qualify based on their battery size.
Benefits
Upgrading to a battery-enabled appliance can enhance your home's energy resilience, ensuring you have power during outages. It also promotes energy independence and supports a cleaner environment by reducing reliance on fossil fuels.
More Information
- Eligibility: Homeowners who pay federal income taxes and install a qualified battery storage system in their residence are eligible.
- Requirements: The battery storage system must have a capacity of at least 3 kilowatt-hours.
- Claiming the Credit: To claim the credit, complete IRS Form 5695 and submit it with your federal tax return in the year the system is installed.
- Unused Credit: If the credit exceeds your tax liability, the unused portion can be carried forward to future tax years.
Details
- Expiration date: December 31, 2025
- Incentive type: Tax Credit
- Maximum Percent: 30%
- Link: More details
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