Home battery storage tax credit questions

[Ashem45]

So I am interested in getting a battery storage system for my house, most likely a Tesla Powerwall. I have solar panels installed back in 2017, but was thinking about adding more depending on the costs.

If I go with just the Powerwall option, would that qualify for a Federal tax credit in 2022? Or will I have to wait until 2023? 

If I sign a contract with an installer between now and Dec 31, 2022, and they start installation in 2022, but let's say the battery isn't activated/turns on/goes live until Jan 1, 2023 or later due to the power company dragging their feet on approving it (I had to wait 2 months before my solar panels could be approved/activated by the power company), does that count as a 2022 install  year, or 2023 for the purposes of claiming a tax credit on it?

I live in SE Wisconsin. Are there any state rebates/credits for installing a battery system without the solar panels? Or does it only qualify if I install additional solar panels on my roof?

[tagteam]

You might want to contact Support for state-specific quesstions.

What is the TurboTax phone number? (intuit.com)

[Opus 17]

The amendment to section 25D that added battery storage technology takes effect for property placed in service after Dec 31, 2022.  Placed in service means installed, inspected, and ready to be turned on, regardless of when you actually pay for it.

You will have to check with your state for state credits. 

[mkbca]

So to be clear: if my solar panels were installed in 2016 and then in 2022 I added 2 Powerwalls coordinated with my solar panel system I do or do not qualify for a federal credit?

[PattiF]

Yes,  they do not qualify for a federal credit for 2022. 

Please see this chart from Tesla:

[Opus 17]

@mkbca 

The 2022 law changes, which take affect in 2023, are something of a clarification. The original law only listed “solar power“ and did not make it clear whether that included batteries. Later IRS regulations have interpreted that to mean that batteries alone don’t count, even if they are connected to solar panels. The 2022 law clarifies this by adding a specific credit for battery only starting in 2023. Unfortunately, battery only installations made in 2022 are not eligible.