Section 25D Battery Storage Credit Is Go…

The IRA's 30% standalone battery storage credit (Section 25D) was terminated by the OBBBA effective December 31, 2025. If you installed in 2025, you still have until October 15 to claim it on an extended return.

Read the full article: /articles/federal-credits-standalone-battery-storage

Texas has no state storage incentive, so the federal 30% standalone credit is the whole story for me. Does the credit apply to individual cells purchased from importers, or only to complete packaged battery systems? I want to confirm the BOM I hand my CPA actually qualifies before I commit to the build.

I already filed my 2025 taxes without an extension. Installed a 13.5kWh DIY LFP pack in November 2025 — materials cost around $1,900. The 30% credit on $1,900 is $570. Is a 1040-X amendment worth it for $570? Genuinely asking — amended returns seem to invite extra scrutiny and I'm not sure the math works once I factor in CPA time.

This changes my math meaningfully. I installed a standalone LFP pack last September and wasn't expecting any federal credit. If this applies retroactively to 2025 as described, that's a $660 credit on my $2,200 materials cost. Filing an amended return is annoying but worth it for $660. Anyone done this yet?

The California SGIP interaction is worth reading carefully. SGIP already covered standalone storage; this aligns federal with state for the first time. For California residents combining both, the effective payback period on a DIY LFP system is genuinely under 4 years in some TOU scenarios. Full article has the math.

The Form 5695 hasn't been updated yet per the article — attach a written statement citing Notice 2026-31. I'd recommend keeping the original component invoices, the cell spec sheets (so the IRS can verify kWh capacity), and your BMS datasheet in one folder. The 3 kWh minimum is easy to hit even on small builds.

Section 25D Battery Storage Credit Is Gone for New Installs — But 2025 Filers Still Have Until October