Domestic content bonus credit guidance: What''s
Take a closer look how the domestic content bonus credit qualification requirements have changed & the impact on solar and BESS
Among the many provisions of the IRA, the introduction of battery storage system tax credits stands out as a major incentive for individuals and businesses looking to invest in energy storage solutions. These battery storage system tax credits aim to accelerate the adoption of energy storage technologies.
Commercial/Grid-scale There is also a investment tax credit for larger energy storage projects. The Section 48 Investment Tax Credit offers businesses a similar 30% base tax credit for energy storage systems under 1 MW, or over 1 MW if certain apprenticeship and wage requirements are met.
Additionally, solar + storage projects must now qualify for the domestic content bonus credit separately for each technology (solar and storage) based on the final rules for technology-neutral clean energy credits.
Yes, lithium batteries do qualify for the tax credit under the Inflation Reduction Act (IRA), with the potential for additional federal tax incentives for battery storage systems that can increase the credit up to 40%.
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