Residential Renewable Energy Income Tax Credit
| Program Type | Personal Tax Credit |
|---|---|
| Technologies | Solar water heat, solar space heat, photovoltaics, wind |
| Amount | 15 percent of expenditure spent on wind or solar energy property- maximum of $1000 |
| Required Documentation | Schedule EC: http://www.mass.gov/Ador/docs/dor/Forms/IncTax08/addl.pdfs/sch_ec.pdf |
| Official Web Site |
http://www.mass.gov/pageID=dorterminal&L=6&L0=Home&L1=Businesses&L2=Help+%26+ Resources&L3=Legal+Library&L4=Regulations+(CMRs)&L5=62.00:+Income+Tax&sid=Ador&b= |
The Commonwealth of Massachusetts offers an incentive in the form of solar and wind “energy credits.” The credit can offset your personal income tax in the year that the system was financed. The amount that is credited is 15 percent of expenditure on your wind or solar equipment (including the cost of installation). However this credit is capped out at $1000. So even if 15 percent of your expenditure is greater than that, you will be rewarded no more than the maximum allowance of $1000 in energy credit.
If you owe less in income tax than you have in credit, the remaining credit will rollover for three consecutive years. Any unused credit after three years will be forfeited.
This credit is available to any owner or tenant of a residential property. In order to qualify to receive this incentive, the site where the renewable energy is produced and used must be the primary residence of the individual who is seeking this Income Tax Credit. The system must be new and in compliance with all applicable performance and safety standards and must be expected to remain in operation for at least five years.
