Massachusetts Solar and Renewable Energy Tax Rebates and Incentives
Although small in size, the state of Massachusetts is full of historical significance and has her roots set deep in the foundation and creation of this country. In addition to a rich history reflected in landscape and architecture, Massachusetts also offers a wealth of alternative energy incentive programs, making it competitive as one of the most solar progressive states in the country.
- Alternative Energy and Energy Conservation Patent Exemption (Corporate). This tax incentive applies to commercial sectors and encourages the development of new alternative energy products by offering a 100% tax deduction for any proceeds received from the sale or lease of patents relating to solar and wind products.
- Excise Tax Deduction for Solar- or Wind-Powered Systems. Industrial and commercial industries can capitalize on this incentive by deducting up to 100% of expenses from the installation of solar components.
- Excise Tax Exemption for Solar- or Wind-Powered Systems. This tax exemption is for commercial and industrial applications. It allows for certain solar systems to be exempt from excise property taxation for the duration of the depreciation period.
Industry Recruitment Incentives
- MTC Business Expansion Initiative. The Massachusetts Technology Collaborative (MTC) offers loans to companies who are developing new or existing alternative energy systems and components.
- MTC - Sustainable Energy Economic Development (SEED) Initiative. This program is similar to the previous one, except that it is designed to support fledgling companies that have a strong product but not sufficient financial support.
- Alternative Energy and Energy Conservation Patent Exemption (Personal). This deduction is for consumers who generate income from the sale of an alternative energy related patent.
Personal Tax Credit
- Residential Renewable Energy Income Tax Credit. This credit is for homeowners who install solar-related systems in their homes. It allows for a 15% tax credit on State income taxes up to a $1,000 maximum.
- Mass Energy Renewable Energy Certificate Incentive. This incentive is offered by the Energy Consumers Alliance of New England (ECANE). They buy renewable energy credits (RECs) from all sectors that are producing their own electricity through alternative energy sources. They pay .03 per kWh for up to three years.
Property Tax Exemption
- Renewable Energy Property Tax Exemption. This allows for commercial, industrial, and residential properties that are mainly supplied with power from a solar or wind system to be exempt from property taxes for up to 20 years.
Sales Tax Exemption
- Renewable Energy Equipment Sales Tax Exemption. The State of Massachusetts waives the sales tax on any equipment directly related to a solar system for residential purposes.
- MTC Matching Grants for Communities. This unique program allows for customers of the MTC utility company to pay a voluntary amount each month to support green energy. These funds are reserved and then offered through grant programs to community projects to install alternative energy systems, including solar.
- MTC Commonwealth Solar Rebates. This state-sponsored rebate program is available to those who install alternative energy and who are also tied-into certain utility grid systems.
Throughout the state, the individual utility companies offer a number of additional incentives including rebates and loans. The State of Massachusetts also offers a net metering program to those who qualify. As you can see by the abundant amount of incentives listed above, Massachusetts is definitely “on the ball” when promoting alternative energy. Other states should refer to its example and note how successfully it’s have implemented its programs.