Alternative Energy and Energy Conservation Patent Income Tax Deduction (Corporate)

July 18, 2021

Summary

Massachusetts offers a corporate income tax deduction for (1) any income -- including royalty income -- received from the sale or lease of a U.S. patent deemed beneficial for energy conservation or alternative energy development by the Massachusetts Department of Energy Resources, and (2) any income received from the sale or lease of personal or real property or materials manufactured in Massachusetts and subject to the approved patent. The deduction is effective for up to five years from the date of issuance of the U.S. patent or the date of approval by the Massachusetts Department of Energy Resources, whichever expires first.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Massachusetts
Incentive Type: Industry Recruitment/Support
Web Site:
Administrator: Massachusetts Department of Revenue
Start Date: 1979
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Geothermal Heat Pumps
  • Municipal Solid Waste
  • Fuel Cells using Non-Renewable Fuels
  • Yes; specific technologies not identified
  • Wind (Small)
  • Fuel Cells using Renewable Fuels
Incentive Amount: 100% deduction
Terms: 5 years

Authorities

Name: MGL ch. 62, § 2(a)(2)(G)
Effective Date: 1979

Contact

Name: Massachusetts Department of Revenue
Address: P.O. Box 7010
Boston MA 02204
Phone: (800) 392-6089

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.