RESIDENTIAL
Massachusetts Homeowner Incentives for Renewables and Efficiency
Renewable Energy Equipment Sales Tax Exemption
Massachusetts law exempts from the state sales tax, the sale of equipment directly relating to any solar, wind, or heat pump system to be used as a primary or auxiliary power system for heating or otherwise supplying the energy needs of a person’s principal residence in the state. [The exemption does not apply to commercial users (M.G.L. c. 64H, sec. 6(dd).)]
Click on the link below for the Massachusetts Tax Form ST-12.
http://www.mass.gov/Ador/docs/dor/Forms/Wage_Rpt/PDFs/st_12.pdf
Residential Renewable Energy Income Tax Credit
Massachusetts provides an income tax credit for individuals who install renewable energy systems (solar or wind-powered) in their residences. The credit is 15% of the net expenditure (including installation) for the system, or $1,000, whichever is less. The credit does not apply to commercial users.
Click on the link below for the Massachusetts Tax Form Schedule EC.
http://www.mass.gov/Ador/docs/dor/Forms/IncTax07/addls/sch_ec.pdf
Federal Homeowner Incentives for Renewables and Efficiency
Revised federal solar tax incentives
In October 2008, through the Energy Improvement and Extension Act of 2008 (Division B, Section 106), the tax credits were extended once again –- until December 31, 2016 –- and a new tax credit for small wind energy systems and geothermal heat pump systems was created. The $2,000 monetary cap on solar water heating property was not lifted and remains in effect.
Key Conditions
- Maximum credit of $2,000.
- Systems must be placed in service from January 1, 2006, through December 31, 2016.
- Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
- At least half the energy used to heat the dwelling’s water must be from solar in order for the solar water-heating property expenditures to be eligible.
- The tax credit does not apply to solar water heating property for swimming pools or hot tubs.
- In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $6,667. This does not apply to married individuals filing a joint return. The credit that may be claimed by each individual is proportional to the costs he or she paid.
- The home served by the system does not have to be the taxpayer’s principal residence.
Click on the link below for IRS form 5695 and instructions
http://www.irs.gov/pub/irs-pdf/f5695.pdf
For more on incentives, see Database of State Incentives for Renewables & Efficiency (DSIRE)
For information on Energy Star products, click here
