Flag of the state of Massachusetts from Crestock Creative Photos
The State of Massachusetts gives a 15% tax credit of up to $1000 for the purchase and installation of a renewable energy system on an individual’s primary residence. If the tax credit is larger than the taxpayer’s tax liability, the resident can carry over for the excess for the next three years.
Qualified renewable energy systems include solar water heat, solar space heat, solar photovoltaic and wind energy. The taxpayer must be the owner using the renewable energy system, which must remain in operation for at least five year. The tax credit is available to owners and tenants of any residential property with a renewable energy system.
For newly built homes, the tax credit goes to the original occupant of the property. Joint owners of a residential property share the tax credits in the same proportion as their amount of ownership of the property in question.
A person can’t apply for tax credits for the costs of repair and maintenance of installed renewable energy systems, nor do the for tax credits apply to expenses related to insulation, caulking or weather-stripping, storm or thermal windows or doors, furnace ignition systems, devices for modifying flue openings, furnace replacement burners, automatic setback thermostats, energy use meters and other similar devices.
To read the entire text regarding Massachusetts’ Residential Renewable Tax Credit, you can go here.
In addition to the income tax credit, Massachusetts also exempts state sales tax on equipment used for solar, wind or heat pump systems that will be used as the primary or backup system as an energy source or for heating needs in one’s residence. This sales tax exemption is not available to commercial consumers.
A taxpayer can also avail an exemption from local property tax when he installs a solar or wind power system on his property. The exemption is valid for a 20-year period, beginning on the date of installation.
For more information about Massachusetts Residential Renewable Energy Tax Credit, you can contact:
Legal Department
Massachusetts Department of Energy Resources (DOER)
100 Cambridge St.
Suite 1020
Boston, MA 02114
Phone: (617) 626-7300
Fax: (617) 727-0030
E-Mail: doer.energy@state.ma.us
Web Site: http://www.mass.gov/doer
Or:
Tax Information
Massachusetts Department of Revenue
P.O. Box 701
Boston, MA 02204
Phone: (800) 392-6089
Web Site: http://www.dor.state.ma.us
Disclaimer: This article does not constitute a source of official legal or financial advice. While we attempt to represent all data as accurately as possible, we advise you to refer to official government websites for the most accurate and up-to-date information.
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Yeah, this is a very good idea to against the pollution problems that we are facing in our part of the world, thank for the great article, keep up the good work.
If the tax credit is higher, I think more people would switch to renewable energy.