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Can I Earn a Tax Credit for Installing a Generator? 

Can I Earn a Tax Credit for Installing a Generator? 

Posted on:12 Dec, 2021 / Posted In: Generac

With various energy incentive rebates circulating at both the state and local levels, you may be wondering whether you can earn a tax credit for installing a generator. While there is not a specific incentive at this moment that pertains to the installation of a standby generator for homes or businesses, there may be other incentives. Here’s what you should know about earning a tax credit for installing a generator or investing in other energy-efficient upgrades—

Tax Deduction for Powering Medical Equipment

While there is no tax credit that pertains specifically to the installation of a standby generator, there may be a tax credit available if you use the generator to power medical equipment. If you install the generator for the purpose of powering medical equipment for yourself, your spouse, or a dependent of yours living in the home, you can include the cost of the special equipment (i.e. the standby generator) as a  “medical expense.” Note, however, that if installing the standby generator increases the value of your property, you’ll have to subtract the increase in value from the cost of the generator in order to seek the tax credit. 

The only other way in which you may experience any tax benefit for purchasing a standby generator is in the event that you purchased the generator following a natural disaster and you are eligible for a reimbursement for the generator through the Federal Emergency Management Agency (FEMA). You may also be able to exclude a capital gain tax on the sale of your home if you install a standby generator and the generator increases the value of your property. 

Illinois Energy-Efficient Incentives

In October 2021, Illinois passed a sweeping clean energy law that includes incentives and rebates for energy-efficient residential upgrades, including the installation of a solar PV system and the purchase of an electric vehicle. For low-income homeowners, the law will put more money towards free and low-cost home energy assessments and energy-efficient upgrades. If you’re thinking about solar, talk to our professionals about the compatibility of a standby generator and solar panels and how to ensure there’s energy to your home at all times. 

Call Generator Technologies Inc. Today

If you’re thinking about installing a standby generator, there may be tax savings available depending on when you purchase and for what reason. To learn more about standby generator installation in Illinois and how our team at Generator Technologies Inc. can help, reach out to us today by phone or online. We are here for you.

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