Massachusetts Solar Tax Credit

Discover how easy it is to switch to solar in Massachusetts with the help of the Solar Investment Tax Credit. Wondering how it works? Check out this simple guide on getting the Solar Tax Credit in Massachusetts.

What is Solar Tax Credit

The Solar Tax Credit in Massachusetts helps people and businesses. It's like getting a discount on the cost of solar panels. Instead of giving you money back, it directly lowers the amount of taxes you have to pay.

This discount is available for those who install solar panels before December 31, 2034. After that, the discount becomes a bit less - 26% in 2033 and then 22% in the beginning of 2034.

How does the Solar Tax Credit work in practice?

Here's how it works in simple terms: Let's say you spend $20,000 on solar panels for your home. With the Solar Tax Credit, you can subtract $6,000 from what you owe in taxes. So, it's like paying only $14,000 in the end. If there's any discount left, you can use it in the following years.

How do I get a solar tax credit in Massachusetts?

Claim the Solar Tax Credit after the solar system is already installed. Leased systems aren’t eligible — you must own the system. The solar PV system must be installed within the United States and must be new or used for the first time. Make sure to keep all the paperwork from when you installed the solar panels. You won't need to send it in, but it might be needed if someone checks.

Read also

Tax Day has never been so shiny: Federal Solar Tax Credit in 2024

To claim the Solar Tax Credit as a homeowner, complete IRS Form 5695, attach it to the federal income tax return, and ensure that your residential energy credit information is added to Schedule 3 (Form 1040). File the tax return by the applicable deadline. April 15 is the most common date of National Tax Day in the US.

Need help? Follow our guide!

We cover filling out the forms for claiming ITC step by step

Step-by-step guide

Benefits of the Massachusetts Solar Tax Credit

The good part is, the discount isn't just for the cost of the solar panels. It includes everything - the panels, mounting, the shipping, and the work. There's no limit to how much you can get back. Besides the national discount, Massachusetts might also have other ways to help you with the cost of going solar. Check out our guide on Massachusetts solar incentives for more details.

Andrey Gorichenski

Senior Editor

Andrey had been a news editor and freelance writer for a number of medias before joining A1SolarStore team. Climate change and its impact on people's lives has always been among his interests and it partially explains his degree in Philosophy and Ethics.

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