Understanding Tax Credits & Deductions For Standby Generators

There are plenty of good reasons to add a backup generator from Generac to your home. It can provide you with the ultimate security and safety in the event of a power outage. With a whole-house generator on duty, your lights and appliances stay running even when the grid fails. There are also some potential tax benefits you may be able to take advantage of when having a generator installed. These may take the form of deductions that lower your taxable income or credits that reduce the amount of taxes you owe. Read on to learn more about how you might be able to receive a whole-house generator tax credit or deduction.

Is a Home Generator Tax Deductible?

As important as energy security can be for you and your home, as of early 2024 there is no specific home generator tax credit. However, there are certain circumstances that may allow you to claim a deduction or receive a tax credit for your backup generator. These include:

• Home Offices: If you work out of your home and use your whole-home generator to ensure your files are backed up or to keep your systems running, you may be able to deduct a portion of its purchase price and its operating costs from your tax return. It’s always best to check with your tax professional or accountant to make sure this is appropriate for you.
• Medical Equipment: Those with specialized medical equipment in their homes may be able to deduct the costs associated with their backup generators. You’ll need to keep detailed records outlining the cost to purchase your unit as well as how much you spend to operate it.
• Renewable Energy: If your backup power system is powered by a renewable energy source, such as solar panels, there is a possibility that it may qualify for federal tax credits.

In addition to savings on your federal taxes, there may be further incentives depending on the state in which you live. For example, states such as Florida, Louisiana, and North Carolina offer programs that may provide state tax credits for homes with renewable energy systems, including backup generators powered by solar. In other states such as Texas, utility providers offer rebates for installing backup generator systems. Check with your state’s energy office or local utility provider to see which programs are available where you live.

Requirements for Compliance

If you’re trying to obtain any kind of Generac generator tax credit or deduction, you’ll need to be aware of your obligations to avoid complications when you file. For example, you should hold onto all documentation regarding your generator’s installation to verify its cost. The installation also should be handled by professionals who understand the permitting requirements where you live and ensure compliance with all relevant local codes. Failing to do so can jeopardize your eligibility, depending on your circumstances.

The Long-Term Financial Benefits

Even if you can’t secure a tax credit or deduction related to your new whole-home generator, there still are many ways you can benefit from a financial standpoint. For instance, your insurance provider may offer discounts on your homeowner’s policy if you have a backup power solution. You may also be able to use your generator during peak hours to reduce your reliance on the energy grid and lower your utility bill. When it’s time to sell your home, having a whole-house generator also can have a positive impact on the value of your property.

If you’re thinking about installing a whole-home backup generator, you may be entitled to benefits you didn’t know were available. Choosing Canter Power Systems means you can get the most out of your unit, thanks to our status as the Nation’s largest Generac dealer. To learn more, reach out and talk with one of our representatives today.