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Massachusetts Septic System Tax Credit

By
Real Estate Agent with Century 21 Classic Gold, Carver MA

Massachusetts Septic System Tax Credit

It's that time of year again. If you've had to repair of replace your septic system in Massachusetts you most likely qualify for The Massachusetts Septic System Tax Credit. The credit applies to dwellings occupied as a principle residence who had to replace or repair a system due to failure.

The tax credit can be as much as $6000 and is computed by taking 40% of the actual costs of the repair of system not to exceed $15,000. ($15,000 x 40% = $6000 which is the maximum credit allowed.

Unfortunately you cannot claim the whole credit in one tax year. The most you can claim is $1500 per year, so it's going to take you 4 years to get the full credit. The credit can be claimed beginning in the tax year the system was completed.

Qualifying expenses for this credit are:Massachusetts Septic System tax credit

  • A new or upgraded system                                         
  • A shared system
  • A connection to a municipal system
  • A system repair

One important note: if you voluntarily repair or replace your system, the credit will not apply to you. Be sure you have a copy of your "Failed" Title V  Report or other proof supporting that your system has failed so you can claim the Massachusetts Septic System tax Credit.

If you've been told you have a failed septic system under Title V and you want to know the process, please read my Blog entitled What is a Perc Test?

Be sure to consult with your tax adviser to make sure you qualify for The Massachusetts Septic System tax credit of up top $6000.

For a more detailed version of the credit, please visit the States webpage regarding this.

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