Are Whole Home Generators Tax Deductible?
April 15, 2023
Whole home generators can be an expensive investment. However, in some cases installing a whole home generator can be tax deductible. Here are a few whole home generator tax deductions to consider discussing with your accountant:
Business Use of Whole Home Generators
If your home doubles as your office, you may be eligible for a tax deduction on your whole home generator. According to the IRS in Section 179, industrial generators are tax deductible if they are used in an area that is at least 50% a business space.
Medical Use of Whole Home Generators
If a physician deems electricity is necessary to power medical equipment in your home, then your whole home generator may be tax deductible. The use of your whole home generator for medical purposes can be deducted up to 10% of your annual gross income (AGI). Additionally, FEMA may reimburse you for buying a whole home generator during a declared emergency or major disaster if you needed it for medical reasons.
Capital Gain Tax Benefits of Whole Home Generators
Adding a whole home generator to your house will likely increase your property’s value. With this increase in value comes the opportunity to qualify for a capital gains tax credit when you sell in the future! Not to mention, you’ll likely have an easier time selling your home in Florida with a whole home generator already installed. Whole home generators add both appeal and value to a home!
Local Tax Credits for Whole Home Generators
While you may not qualify for federal tax deductions for a whole home generator, it’s still worth looking into local and state tax credits for generators. For example, some local utility companies offer energy credits and rebates for clean-burning fuel sources and a natural gas generator may qualify.
Buying a Whole Home Generator During An Emergency
While this isn’t guaranteed, FEMA will sometimes offer reimbursements for generators purchased during a federally declared natural disaster. To be reimbursed, you must first apply on DisasterAssistance.gov. However, it’s recommended that you have a whole home generator far before a storm hits.
If you are interested in installing a whole-house generator in your Southwest Florida home, contact Empowered Global to set up a free consultation and learn more about whole-home generator costs.