Home Solar Batteries May Be Eligible for 30% Tax Credit
The IRS recently issued a private letter ruling (pdf, via IRS) in which a taxpayer was granted the 30% residential renewable energy tax credit for the purchase and installation of a battery system for their home solar energy system.
Mar. 07, 2018
The IRS recently issued a private letter ruling (pdf, via IRS) in which a taxpayer was granted the 30% residential renewable energy tax credit for the purchase and installation of a battery system for their home solar energy system.
In this case, the married couple requested “a letter ruling that the cost of installing certain energy storage property to be integrated into other residential solar photovoltaic system property will qualify as a ‘qualified solar electric property expenditure’ eligible for the tax credit under § 25D.”
The agency said that the credit could apply so long as the device stored only solar energy generated from their own solar panels.
A private letter ruling generally applies only to the named taxpayer, and therefore may not set precedent. However, the case should provide general guidance for tax professionals or taxpayers as to how the agency interprets this part of the energy tax credit regarding home solar arrays.