Monday, February 10, 2014

Massachusetts Residential Property Tax Credits

With tax season, among us, here are a few credits that residences may be eligible:

Repair or Replacement of Failed Cesspool or Septic System Credit (Title V)

Solar Wind and Energy Credit (Renewable Energy Source Property)

Lead Paint Removal Credit

Massachusetts allows a credit to any owner of Massachusetts residential property who has paid for deleading (covering or removing lead paint) of such property for purposes of bringing it into either:
  • full compliance with M.G.L., Chapter 111, Sections 189A - 199B; or
  • interim control pending full compliance pursuant to M.G.L., Chapter 111, Sections 197(b).
For purposes of bringing the property into full compliance, the amount of credit allowed per residential unit equals the lesser of:
  • the cost of removing or covering any paint, plaster, or other structural accessible materials containing dangerous levels of lead; or
  • $1,500.
To qualify as full compliance deleading for purposes of claiming the deleading credit, all of the following requirements must be met:
  1. a dangerous level of lead in the accessible structural materials of the residential premises is established by a licensed inspector;
  2. following deleading by an authorized person, the owner obtains a letter of compliance from a licensed inspector; and
  3. the owner completes Massachusetts Schedule LP and encloses it with the tax return.  
For purposes of bringing the property into interim control pending full compliance, the amount of credit allowed per residential unit equals the lesser of:
  • one-half the cost of removing or covering any paint, plaster, or other structural accessible materials containing dangerous levels of lead; or
  • $500.
To qualify as interim control for the purpose of claiming the deleading credit, all of the following requirements must be met:
a dangerous level of lead in the accessible structural materials of the residential premises is established by a licensed risk assessor;
  1. the premises are deleaded using interim control measures performed by an authorized person, and the owner obtains a letter of interim control from a licensed risk assessor which certifies that the costs of instituting interim control measures are costs necessary to achieving full compliance; and
  2. the owner completes Massachusetts Schedule LP and encloses it with the return. The owner should also retain the letter of interim control.
Source: Click link for more information MA Department of Revenue 2014

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