BIG NEWS: Most Joule Case products now qualify for a 30% Tax Credit!
When President Biden signed the Inflation Reduction Act (IRA) into law, Joule Case investors and customers both received a massive boost. Not only did this bill allocate billions in funding for cleantech R&D and battery manufacturing based in the United States, but it also established a new 30% tax credit for energy storage. It also raised the solar investment tax credit back to its original 30% (up from 22%).
Before the signing of the IRA, some Joule Case customers were able to take advantage of a tax credit when their energy storage system was connected to solar generation. Now, Joule Case products with over 5kWh of energy storage qualify for a tax credit, regardless of how they are charged. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe.
We’ve seen impressive momentum with small-to-medium-sized businesses that need portable power. For businesses like this, every dollar counts and this tax credit is a VERY BIG DEAL. This incentive took effect retroactively on January 1, 2022, so we are in the process of connecting with each of our customers to make sure they take advantage of this new credit.
Investing in a battery system costs more than a generator upfront, but the long-term operation cost is hardly comparable. We currently estimate that customers will save roughly 90% over a 10-year timeline with most of our common systems. This tax incentive makes the initial transition to emissions-free battery systems more affordable and will likely be the tipping point for customers who have been on the fence.
Disclaimer: We are experts at advanced power systems—not law and taxation. We highly recommend consulting your attorney and accountant to understand how to fully take advantage of the tax incentives that might be available. This article does not constitute professional tax advice or other professional financial guidance and should not be used as the only source of information when making purchasing, investment, or tax decisions.