Cybertruck + Powershare = Qualified Battery Technology for Federal Investment Tax Credit?

[jpend]

With Powerwall 3 now available in the US, I was looking at the guidance on the Federal tax credits for "qualified battery technology". My understanding is that as of 2023, battery-only stand alone installations without solar qualify for the 30% tax credit. Assuming the Cybertruck is just a big battery (maybe at least partially) in the sense of it's function with Powershare and the v3 home gateway, is there potentially a case for claiming the tax credit with this setup?

Base requirements qualified battery technology:
Section 25D
(d)(6)

(A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and​

(B) has a capacity of not less than 3 kilo- watt hours​

Special provisions:
(e)

(3)Swimming pools, etc., used as storage medium​

Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.​

(e)(3) presents an interesting case - The Cybertruck clearly has another function, however the batteries do not have another function other than providing energy storage. The Cybertruck battery pack is purpose-built to provide this functionality to a home through Powershare. I'm wondering if Tesla created a line-item cost for the battery pack and the Powershare hardware, could there be a path to claiming the credit? Thoughts? Seems like this would easily drive more potential buyers for any vehicle that could meet the requirements through Powershare.

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[Woodrick]

I don't believe that the Cybertruck is "installed"

 

[sylvius]

But at a minimum is the cost of gateway installation eligible for the 30%? Hopefully it is but if it is, the installers probably know it too and have added 30% to the cost.

 

[TwilightHan]

I don't believe that the Cybertruck is "installed"

My battery solution at my home has wheels to move it around. What’s the difference? It’s a point zero energy battery solution with eight 2kwh batteries.

 

[TwilightHan]

With Powerwall 3 now available in the US, I was looking at the guidance on the Federal tax credits for "qualified battery technology". My understanding is that as of 2023, battery-only stand alone installations without solar qualify for the 30% tax credit. Assuming the Cybertruck is just a big battery (maybe at least partially) in the sense of it's function with Powershare and the v3 home gateway, is there potentially a case for claiming the tax credit with this setup?

Base requirements qualified battery technology:
Section 25D
(d)(6)

(A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and​

(B) has a capacity of not less than 3 kilo- watt hours​

Special provisions:
(e)

(3)Swimming pools, etc., used as storage medium​

Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.​

(e)(3) presents an interesting case - The Cybertruck clearly has another function, however the batteries do not have another function other than providing energy storage. The Cybertruck battery pack is purpose-built to provide this functionality to a home through Powershare. I'm wondering if Tesla created a line-item cost for the battery pack and the Powershare hardware, could there be a path to claiming the credit? Thoughts? Seems like this would easily drive more potential buyers for any vehicle that could meet the requirements through Powershare.

I use TurboTax and there is something wrong with how they do their forms and doesn’t calculate properly. I calculate manually and it all works out. I may get my cyber beast mid-end of 2024. I’m going to add a solar panel and bundle everything in per the form. There is nothing that says a battery solution can’t be on wheels or fixed in place. Even if so, I’d fix that cybertruck in my garage and use it as a game station because it’s cheaper than powerwalls.

the tax guidelines and rules are there. If they didn’t want a battery solution on wheels, They should have said so.

 

[Woodrick]

My battery solution at my home has wheels to move it around. What’s the difference? It’s a point zero energy battery solution with eight 2kwh batteries.

I believe that the Fed credits required installed. Portable isn't installed.

 

[TwilightHan]

I believe that the Fed credits required installed. Portable isn't installed.

An L Bracket will do the job just fine. But you can get a little more creative.

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