Massachusetts offers a state income tax credit of 15% of the cost of a residential solar system, up to $1,000. This incentive, known as the Massachusetts solar tax credit, makes purchasing solar more affordable and helps homeowners reduce long-term electricity costs.
If you’re considering solar, understanding the Massachusetts solar tax credit is essential to maximize savings and plan your system effectively.
What the Massachusetts Solar Tax Credit Covers
The Massachusetts solar tax credit allows homeowners to claim 15% of the total cost of a purchased solar system, up to $1,000, as a credit on state income taxes.
Important: This credit only applies to systems that are purchased outright or financed through a loan. Leased systems or Power Purchase Agreements (PPAs) are not eligible. The system must be installed on a primary residence in Massachusetts.
How the Tax Credit Works
The Massachusetts solar tax credit reduces your state income tax dollar for dollar.
For example:
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A $5,000 system generates a $750 credit.
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A $10,000 system generates $1,500 in credit value, but due to the $1,000 cap, that is the maximum claimable.
The credit is non-refundable, meaning it cannot exceed your tax liability in a given year. Unused portions can be carried forward for up to three additional tax years, allowing homeowners to take full advantage even if they cannot use the entire credit immediately.
Who Qualifies for the Massachusetts Solar Tax Credit
Take advantage of the Massachusetts 15% solar tax credit to make your home solar system more affordable.
Most homeowners who own their solar system qualify, provided the system meets state requirements:
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Installed on a Massachusetts primary residence
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Residential solar photovoltaic system
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Purchased outright or financed (ownership required)
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Installed and placed in service during the tax year being claimed
Leased systems or PPAs are not eligible. Consulting a tax professional is recommended to confirm eligibility for your specific situation.
Is There an Expiration Date for the Massachusetts Solar Tax Credit?
The Massachusetts solar tax credit does not have a scheduled expiration. It is part of state law and remains available to homeowners who install qualifying systems. While future legislation could change incentives, homeowners who install now can take advantage of the credit immediately.
Why the Massachusetts Solar Tax Credit Matters
The Massachusetts solar tax credit makes solar ownership more affordable and, when combined with net metering, sales tax exemptions, and property tax exemptions, it significantly reduces upfront costs.
For homeowners who purchase their system, this credit can lower energy expenses and make the transition to solar more financially feasible.
Ready to take advantage of the Massachusetts solar tax credit?
Contact Suncovia today for a free consultation and personalized solar plan. Our local team handles everything from design to installation, helping Massachusetts homeowners save on energy and start generating clean, affordable power.
Schedule Your Free Consultation: https://suncovia.com/free-quote/
