what if your generator was a tax write-off?

investing in a fast, reliable backup power option for your home makes a difference during an outage— but is there government support for your investment? depending on where you live and why you plan to purchase a generator, there may be opportunities for tax deductions or even full coverage of the price of your generator. let’s review your options together.

do you live in an outage-heavy or disaster-prone area? if you live in an area affected by natural disasters like hurricanes, tornadoes, and severe flooding, you may be able to receive financial assistance from fema. partial or full coverage for your generator purchase is most likely if your home is in a location that has been presidentially-declared as a disaster area. we recommend reviewing any additional disaster-specific guidelines for receiving reimbursement, including defined purchasing windows and generator types, before purchasing your new home generator.

did you previously own a generator that was destroyed in a disaster? some homeowners may have already owned a generator prior to a disaster. if your generator was damaged or destroyed during severe weather or other disaster, fema may provide financial assistance with any necessary repairs and even total replacement. again, be sure to check for any qualifications necessary for reimbursement before scheduling repair work or purchasing a new generator. beyond support from fema, home generators used exclusively for backup power and damaged during a federally-declared disaster may qualify as tax-deductible. talk with your accountant or financial advisor when preparing for tax season to determine whether or not you can deduct the cost of your generator as a loss.

is your generator purchase considered medically necessary? if you or your family members rely on consistent power to support a medical device or keep important medicine cold, such as insulin, your generator purchase may qualify as tax-deductible. in order to meet deduction requirements, be sure to hold onto any information regarding the date of your generator purchase, the type of generator you select, and how it is used to power your medical devices and protect your medicine.

if you lost power during a federally-declared disastrous event, fema may cover your generator purchase. typically, you’ll need to submit documentation from a medical practitioner stating that the generator is medically necessary. on rare occasions, this documentation may not be required. again, we recommend reviewing any government guidelines before purchasing a generator.

do you work from home? many of today’s homeowners have traded their office cubicle for remote, at-home work. establishing a home office can actually result in some significant tax benefits—especially if your home generator can be considered a necessary business expense. much like a medically necessary generator purchase, you’ll need to maintain documentation of the business use of your generator (for example, safeguarding against outages that may prevent important file transfers) in order to claim the purchase as a deduction when tax season arrives.

invest in greater peace of mind: with reliable power from a home generator, an outage-free future is possible. protect your home and your family against the impact of outages with the peace of mind our backup power solutions offer.

ready to get started? arc electric + lighting can provide a quote today and a number of different financing options are available to you.