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I installed new lithium batteries to my solar system in 2022. Where and how do I enter this info on my tax returns? The old form was a 5695?

 
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I installed new lithium batteries to my solar system in 2022. Where and how do I enter this info on my tax returns? The old form was a 5695?

Same form but it is not fully functional yet ... not until 1/26 at the earliest ...  https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/irs-forms-availability-table-tu...

 

To claim the solar credit, please follow these steps:

  • In TurboTax, open your tax return
  • Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
  • Scroll down to All Tax breaks, locate the section Your Home and click on Show more
  • Click Start next to Home Energy Credits (see screenshot)
  • Follow the interview to enter your information.

I installed new lithium batteries to my solar system in 2022. Where and how do I enter this info on my tax returns? The old form was a 5695?

Are the new lithium batteries an addition to the system or a replacement for batteries previously existing in the system?  If the batteries are replacements for existing, then their cost would either be a non-deductible repair cost or, at best, receive a partial credit to the extent that the capacity of the new batteries (kWh) exceed the capacity of the replaced batteries.

I installed new lithium batteries to my solar system in 2022. Where and how do I enter this info on my tax returns? The old form was a 5695?

Batteries are only allowable for the solar energy credit in 2022 if they are only charged by the solar system and can't be charged by the grid.  Read more here.

https://www.loeb.com/en/insights/publications/2018/03/irs-allows-residential-solar-credit-for-batter...

 

It's also unclear if this applies to new capacity only or also to replacements.  It could be an audit risk to claim the credit.

 

For 2023, the section was clarified that batteries are allowed whether or not they are connected to a solar system, but only if their capacity is 3kWh or more.  There is no distinction made between new installation and replacement. 

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