Corporate Tax Credit for Solar Water Heating Systems

February 25, 2008


In Massachusetts, businesses may take a credit against the state excise tax for the purchase and installation of a solar water-heating system. The system must be installed at a commercial building, and the credit may not exceed $300 or 15% of the system cost, whichever is less. This credit expires December 31, 2007. A business may carry over unused portions of the credit for use in taxable year 2007. Note that a credit for the installation of a solar water heating system in a commercial building between November 1, 2005 and March 31, 2006 may be applied for the taxable year 2006. A business that takes this credit may not also take the state tax deduction allowed under MGL ch. 63, § 38H for the same solar water-heating system.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Massachusetts
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Massachusetts Department of Revenue
Start Date: 11/1/2005
Eligible Renewable/Other Technologies:
  • Solar Water Heat
Incentive Amount: 15% of system cost (including installation)
Maximum Incentive: $300
Carryover Provisions: Unused credit portion may be carried over to taxable year 2007


Name: MGL ch. 63, § 38T
Date Enacted: 11/22/2005
Effective Date: 11/1/2005
Expiration Date: 12/31/2007


Name: Massachusetts Department of Revenue
Address: P.O. Box 7010
Boston MA 02204
Phone: (800) 392-6089
Name: Legal Department
Organization: Massachusetts Department of Energy Resources
Address: 100 Cambridge St.
Boston MA 02114
Phone: (617) 626-7300

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.