You can take the credit in the year the battery is installed and is in-use. If you made energy saving improvements to more than one home that you used as a residence during 2023, enter the total of those costs on the applicable line(s) of one Form 5695. For qualified fuel cell property, the home must be your main home. Qualified battery storage technology can be claimed on 2 residences if the battery storage has a capacity of at least 3 kilowatt-hours.
The battery is part of the Residential Clean Energy credit and would qualify for the 30% when installed.
FAQs on Residential Credits
Energy Tax Credits - Expenses you can claim as part of the Residential Clean Energy Credit (RCE), sometimes referenced as Solar Tax Credit.
- Solar PV panels or PV cells used to power an attic fan (but not the fan itself)
- Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees
- Balance-of-system equipment, including wiring, inverters, and mounting equipment
- Energy storage devices that are charged exclusively by the associated solar PV panels, even if the storage is placed in service in a subsequent tax year to when the solar energy system is installed (however, the energy storage devices are still subject to the installation date requirements)
- Sales taxes on eligible expenses
Both the Energy Efficient Home Improvement Credit (does not carry over) and the Residential Clean Energy Property Credit (does carry over) are nonrefundable personal tax credits. A taxpayer claiming a nonrefundable credit can only use it to decrease or eliminate tax liability. A taxpayer will not receive a tax refund for any amount that exceeds the taxpayer’s tax liability for the year.
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