Massachusetts allows a 15% credit -- up to $1,000 -- against the state income tax for the net expenditure* of a renewable energy system (including installation costs) installed on an individual’s primary residence. If the credit amount is greater than a resident's income tax liability, the excess credit amount may be carried forward to the next succeeding year for up to three years. Eligible technologies include solar water and space heating, photovoltaics (PV), and wind energy systems. The original use of the system must begin with the taxpayer, and the system should “reasonably be expected to remain in operation for at least five years.”
The credit is available to any owner or tenant of residential property. For a newly constructed home, the credit is available to the original owner/occupant. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Any excess credit amount may be carried over to the next 1-3 taxable years.
* The term "net expenditure" is defined as the total purchase price for any renewable energy source property and installation cost less any federal tax credits and rebates/grants received from the U.S. Department of Housing and Urban Development.
|Incentive Type:||Personal Tax Credit|
|Administrator:||Massachusetts Department of Energy Resources (DOER)|
|Eligible Renewable/Other Technologies:||
|Eligible System Size:||Not specified|
|Equipment Requirements:||System must be new and in compliance with all applicable performance and safety standards and must be reasonably expected to remain in operation for at least five years.|
|Carryover Provisions:||Excess credit may be carried forward three years|
|Technologies:||Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Wind (Small)|
|Parameters:||The incentive is 15.00 %, The incentive has a minimum of $1000.00|
|Name:||M.G.L. Ch. 62, § 6(d)|
|Name:||830 CMR 62.6.1|
|Name:||Massachusetts Department of Revenue|
P.O. Box 7010
Boston MA 02204
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.
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