Can a Standby Generator Be a Tax Write-Off If You Work From Home?

With more professionals running businesses from home, power reliability has become more than a convenience—it’s a necessity. If you rely on electricity to earn income, you may be wondering: Can a standby generator be a tax write-off?

The answer is: potentially, yes—if it’s used in connection with a qualified home office or home-based business and if it meets IRS criteria. Here’s how it generally works.

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When a Standby Generator May Qualify as a Tax Deduction

If you work from home and have a qualified home office, certain home improvements related to that space may be deductible. A permanently installed standby generator can sometimes fall into this category.

1. You Have a Qualified Home Office

The IRS typically requires that your home office be:

• Used regularly and exclusively for business, and

• Your principal place of business (or a space where you regularly meet clients or conduct core operations)

If your home office qualifies, certain expenses tied to keeping that space operational may be deductible.

2. The Generator Is Considered a Business-Related Improvement

A standby generator may qualify as:

• A capital improvement, or

• A necessary business expense

This is especially relevant if:

• Power outages would prevent you from working

• You rely on electricity for computers, servers, medical equipment, tools, refrigeration, or communications

• Your business continuity depends on uninterrupted power

In these cases, the generator may be considered part of the infrastructure needed to operate your business.

3. Partial Deduction Based on Business Use

In most situations, only the business-use portion of the generator is deductible.

For example:

• If your home office represents 20% of your home’s square footage, you may be able to deduct 20% of the generator’s cost, installation, and related electrical work.

• The remaining portion would be considered personal use and typically not deductible.

4. Depreciation May Apply

Because a standby generator is a long-term improvement, the IRS may require the cost to be:

• Depreciated over time, rather than deducted all at once

Depending on your tax situation, you may also qualify for:

• Section 179 depreciation, or

• Bonus depreciation

These rules can be complex, which is why professional guidance is critical.

What Expenses Might Be Included?

If the generator qualifies, potentially deductible expenses may include:

• Generator equipment

• Installation labor

• Electrical upgrades directly related to the generator

• Transfer switches and permitting

Again, this typically applies only to the business-use percentage of the home.

Why Home-Based Professionals Are Installing Generators Anyway

Even outside of tax considerations, many home-based business owners choose standby generators because they:

• Prevent lost income during outages

• Protect sensitive equipment and data

• Maintain client commitments and professionalism

• Provide peace of mind year-round

Any tax benefit is simply an added bonus—not the sole reason to invest.

If you work from home and your livelihood depends on reliable power, a standby generator may be more than a comfort upgrade—it may be a business asset. Just be sure to involve your tax professional early so everything is structured and documented correctly.

Important Disclaimers (Please Read)

• This article is for informational purposes only and does not constitute tax, legal, or accounting advice. Tax laws and IRS interpretations change frequently.  Eligibility for deductions depends on your specific facts and circumstances. A standby generator does not automatically qualify as a tax write-off.  You should always consult a licensed CPA or qualified tax professional before claiming any deduction.

Your tax advisor can determine: Whether your home office qualifies, How much (if any) of the generator cost may be deductible, Whether depreciation or other tax strategies apply.