Is A Home Backup Generator Tax Deductible?

The home backup generator is a great addition to any home. Not only does it provide peace of mind in the event of a power outage, but it can also save money on your electric bill. But what about taxes? Is a home backup generator tax deductible?

Can You Claim A Generator On Your Taxes?

As a medical cost, a whole-home generator may be claimed on Schedule A of the tax return. Unreimbursed medical costs that exceed 7.5 percent of the taxpayer’s adjusted gross income are deductible by the IRS for all taxpayers.

However, the Self Generation Incentive Program does not apply to backup generators. Backup power systems must use renewable energy sources like solar to be eligible for a tax credit under the SGIP.

Is There A Tax Credit For A Whole House Generator?

Generators aren’t eligible for tax credits, which is a bummer. Under the Energy Star tax credit guidance, the federal government does not grant tax credits for the installation of a whole-home backup generator. You might choose to inquire as to why you are unable to locate a location where you may claim your credit.

Recommended House Generators

Generac Guardian 24kW Home Standby Generator with PWRview Transfer Switch Wi-Fi Enabled

Champion 8.5-kW Home Standby Generator with 50-Amp Outdoor-Rated Automatic Transfer Switch

Westinghouse 12500 Watt Dual Fuel Home Backup Portable Generator, Remote Electric Start, Transfer Switch Ready, Gas and Propane Powered, CARB Compliant

Is There A Tax Credit For Buying A Generator 2020?

When a backup power generator is needed in an area with high fire risk, taxpayers may get a tax credit of up to $1,500 from the Public Utilities Commission (PUC) under SB 1020 (Dahle, 2019/2020).

How Much Does A Whole House Generator Increase Home Value?

A whole house generator can increase a home’s value by roughly 5%.

Are Whole House Generators Worth The Investment?

Building a whole-house generator does require a hefty outlay of cash. However, you will save thousands in the long run by making this initial investment. When the power goes out, it’s not only the lights that go out. There is no way for any appliances, including refrigerators and sump pumps, to work.

Related Questions and Answers

Are batteries really that much better than a generator?

Generators and batteries both work well for homeowners. But which one is better? This video may help:

Is a generator a capital improvement?

An improvement must either “increase value to a property or considerably lengthen its life” in order to be considered a capital improvement. Renovating your home’s electrical system, building an outside porch, or replacing your roof are all instances of major improvements.

What home improvements increase property taxes in NJ?

Your tax payment may go up if you make any structural or interior improvements to your house. Even the addition of a huge shed, a deck, or even a pool to your property is seen as a positive investment. Maintaining the outward appearance of your home is an important consideration when applying for a new mortgage.

Are solar panels considered capital improvements?

The only exception to this rule is if a homeowner installs solar panels and a tool shed on his land, both of which are permanently fastened to the property.

Is there NJ sales tax on home improvements?

There are exceptions to this rule if the service results in an exempt capital improvement for the property.


Home backup generators can provide you with many benefits in an emergency, and they may even be tax-deductible. To find out, check with your local and state tax laws before purchasing one.

Is there a tax credit for installing a home generator? The answer to this question is no, but it may be worth looking into the tax deductions for installing a home backup generator.

Related Tags

  • generator tax credit 2022
  • natural gas generator tax credit
  • generac generator tax credit
  • does a whole house generator add value to your home
  • will medicare pay for a whole house generator

NEXT UP: What Are the Best Home Backup Power Options?

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Leon Ashcraft
About Leon Ashcraft

Leon Ashcraft is a Safety Instructor and consultant in Colorado with focus on OSHA, environmental health and safety, transportation safety, oil & gas, rescue operations and construction safety. Learn more about Leon here or connect with him on Twitter | LinkedIn | Medium