Residential Renewable Energy Income Tax Credit (Massachusetts)

Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place	Massachusetts
Name	Residential Renewable Energy Income Tax Credit
Incentive Type	Personal Tax Credit
Applicable Sector	Residential
Eligible Technologies	Solar Water Heat, Solar Space Heat, Photovoltaics, Wind
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Amount	15%
Carryover Provisions	Excess credit may be carried forward three years
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.
Start Date	1979
Maximum Incentive	1,000
Program Administrator	Massachusetts Department of Energy Resources (DOER)
References	DSIREDatabase of State Incentives for Renewables and Efficiency

Summary

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 of the 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 Contact

Contact Name	Tax Information
Department	Massachusetts Department of Revenue
Address	P.O. Box 701
Place	Boston, Massachusetts
Zip/Postal Code	02204
Phone	(800) 392-6089
Website	http://www.dor.state.ma.us

Authorities (Please contact the if there are any file problems.)

Authority 1:	M.G.L. Ch. 62, § 6(d)
Date Enacted	1979

Authority 2:	830 CMR 62.61

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.