Can I Claim the 30% Home Battery Credit for my Electric Vehicle (EV) with Bi-directional Power?

I think I've read through all the relevant tax codes, and from what I understand, claiming the residential clean energy credit for a home battery system comes down to three main requirements: 1. The battery capacity needs to be over 3kWh 2. The battery can't primarily be used for transportation of people or goods 3. It must be installed on a US primary residence or vacation home Here's my situation - I recently purchased one of those new electric trucks that has massive battery capacity (around 135kWh) and comes with bi-directional charging capabilities. When set up properly, it can power my entire house during outages, store excess energy from my solar panels, and even send power back to the grid during peak demand. The thing is, my truck stays parked at home and plugged in for backup power approximately 23.5 hours per day on average. I rarely use it for actual transportation - maybe once or twice a week for a quick grocery run. Given that the primary purpose of my truck has essentially become a giant home battery system, would I qualify for the 30% residential clean energy credit? Looking for any professional opinions or links to relevant IRS guidance. Has anyone else tried claiming this?

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18 comments

Rita Jacobs

•8M

I understand why this seems like it might work, but I don't think it will qualify for the 30% residential clean energy credit. The key issue is that an electric vehicle is inherently designed for transportation, regardless of how you personally use it. The IRS clarified in their guidance that qualified battery storage technology must be installed in connection with a dwelling unit located in the US and used as a residence by the taxpayer. While your EV can certainly function as home battery storage, its primary designed purpose is transportation. Think of it this way - your car registration, insurance, and the vehicle itself are all classified as transportation equipment, not as home improvement or energy storage equipment. The IRS tends to look at the fundamental nature and design of items rather than how individuals might use them in edge cases. That said, you might qualify for the EV tax credit instead if you haven't already claimed it. That's specifically designed for electric vehicles used for transportation.

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Rita Jacobs

•8M

That's an interesting scenario, but it would likely still be problematic. Removing the wheels doesn't fundamentally change what the item is - it's still an electric vehicle by design and manufacturing. The IRS would probably consider this similar to trying to claim a home office deduction for a room that's clearly a bedroom. If you were to actually disassemble the vehicle and only use the battery components in a permanent installation separate from the vehicle, that might potentially qualify. However, at that point, you'd void warranties, potentially violate various regulations, and create safety hazards. It would be far more practical and likely less expensive to purchase an actual home battery system designed for this purpose, which would definitely qualify for the credit.

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Ben Cooper

•8M

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Ben Cooper

•8M

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Cynthia Love

•8M

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Darren Brooks

•8M

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Darren Brooks

•8M

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Elliott luviBorBatman

•8M

I was totally skeptical about Claimyr when I first heard about it. Seemed like a scam to me - I mean how could some service get through to the IRS when I couldn't after trying for weeks? But I was desperate about a similar tax credit question (mine was about solar panels installed on a detached garage), so I gave it a shot. Surprisingly, it actually worked! I got connected to an IRS representative in about 15 minutes. The agent checked my specific situation and confirmed that yes, my detached garage qualified as part of my residential property for the credit. Saved me from potentially claiming something incorrectly and getting audited later. Definitely worth it just for the peace of mind of having an official answer directly from the IRS.

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Demi Hall

•8M

The other commenters are right about the EV not qualifying, but I wanted to add that you should look into the specific requirements of Section 25D of the tax code, which covers the Residential Clean Energy Credit. The key issue is that battery storage technology must be used to store electricity for consumption at the qualified residence. While your EV can technically do this, the IRS looks at the primary purpose of the asset. If you're serious about home battery storage, consider a dedicated system like a Tesla Powerwall or Enphase battery. These definitely qualify for the 30% credit when installed with solar, and you don't have to worry about any gray areas.

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Demi Hall

•8M

Yes, there is a minimum capacity requirement. Battery storage technology must have a capacity of at least 3 kilowatt hours (kWh) to qualify for the credit. Most commercial home battery systems easily exceed this - Tesla Powerwalls are around 13.5 kWh and Enphase batteries typically start at 3.5 kWh and can be expanded. The credit covers 30% of the cost, including installation, with no upper dollar limit. Make sure whoever installs it provides you with a certification statement that identifies the system as qualifying for the tax credit, which will help if you're ever audited.

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