✅ Federal Incentives
All federal benefits apply to entities in Massachusetts.
✅State Incentives
⚡ Residential Renewable Energy Income Tax Credit
Massachusetts offers a state income tax credit equal to 15% of the net expenditure for a renewable energy system, including solar, installed on a primary residence. The maximum credit is $1,000, and any excess can be carried forward for up to three years.
⚡ Solar Massachusetts Renewable Target (SMART) Program
Under the SMART program, homeowners can receive fixed payments for every kilowatt-hour (kWh) of solar energy produced, based on their utility provider. The program is available to customers of Eversource, National Grid, and Unitil, and payments continue for 10 years.
⚡ Property Tax Exemption
Installing a solar energy system in Massachusetts does not increase your property's assessed value for tax purposes for 20 years, effectively exempting the added value from property tax.
⚡ Sales Tax Exemption
Massachusetts provides a 100% sales tax exemption on the purchase of solar panels and related equipment, reducing the upfront cost of the system.
⚡ Excise Tax Exemption for Solar or Wind Powered Systems
The state exempts solar and wind-powered systems from the tangible property portion of the corporate excise tax for the length of the system's depreciation period, benefiting commercial and industrial entities.
⚡ Grants and Financing Programs
Various programs offer grants and financing options for solar installations, including:
Massachusetts Clean Energy Center (MassCEC): Offers grants and incentives for renewable energy projects.
Green Communities Grant Program: Provides funding for communities investing in energy efficiency and renewable energy technologies.
Local Option – Energy Revolving Loan Fund: Offers Property-Assessed Clean Energy (PACE) financing, allowing property owners to borrow money to pay for energy improvements.
✅Utility Incentives
Utility-based incentives in Massachusetts vary by provider. Some utilities may offer rebates or incentives for solar installations. It's advisable to contact your local utility provider to inquire about available programs.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC). This provision significantly enhances the financial benefits available to nonprofits investing in solar energy.
Summary
Massachusetts offers a combination of federal incentives, state tax credits, property and sales tax exemptions, and utility-level incentives to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.