Is a Generator a Tax Write-Off?

Posted On: February 12, 2020

Maryland and the DMV area are not immune to power outages, with storms, accidents, and maintenance problems causing blackouts that may last anywhere from a few minutes to a few hours, if not longer. A backup or standby generator can be a great way to protect your home from long-term outages, powering a few essential circuits or even your entire home until power is restored. If you already have a generator or are considering installing one, you may be asking yourself “can I qualify for a tax write-off if I have a generator?” In most cases, a generator will not earn a tax deduction or credit, but there are a few exceptions.

A Generator as a Medical Necessity

If you or a family member has a health condition that requires frequent use of electrically powered medical devices, such as dialysis machines, oxygen machines, CPAP machines, or chair lifts, a generator may be tax deductible. Only a portion of the cost will be deductible, and you will have to include a statement from your physician with your tax return that details the medical condition.

Reimbursements After a Natural Disaster

During a large natural disaster like a hurricane or earthquake, it is not uncommon for power to be out for days or even weeks. In some instances, the Federal Emergency Management Agency, or FEMA, may reimburse homeowners for the cost of a generator once the governor of that state has declared an emergency.

Tax Credits When Selling a Home

If you are selling your home without buying another one, and you stand to make profit, you may be subject to capital gains taxes. It is possible that some of those taxes can be offset by installing a backup generator before you sell, and deducing the cost of the generator as a capital improvement on your tax return.

State Programs

Although the federal government does not offer tax deduction or credits for backup generator installations, some state programs may. Talk to an accountant, tax preparer, or generator installer near you to determine what state programs or incentives are available in your area. Because many standby generators are powered by clean-burning natural gas or propane, they may qualify for state energy tax incentives.

Generator Installations in MD, DC & VA

If you are considering a standby generator for your home in Maryland, Northern Virginia, or the Washington, DC area, talk to our team at Jaffe Electric. We can help you find the best model for your home, and we can provide a reliable, professional installation. As an authorized Generac dealer, we sell, service, and install high-performance backup generators from Generac, and you can be sure your generator is in great hands. With over 35 years of industry experience, you can count on Jaffe Electric for all your residential and commercial electrical needs.

Is a generator a tax write-off in your area? Call our team at Jaffe Electric to find out. Dial 301.253.3778 today or contact us online for generator services anywhere in the DMV area!

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