Residential Renewable Energy Income Tax Credit
Administered by Massachusetts Department of Energy Resources (DOER)
You can claim a 15% tax credit (up to $1,000) on your Massachusetts state income taxes for solar water heating, solar space heating, solar PV, or small wind systems installed on your primary residence. The credit applies to your net costs after subtracting federal tax credits and HUD rebates, and if you can't use the full credit in one year, you can carry the unused amount forward for up to three years.
The system you install must be the original owner's first use, reasonably expected to last at least five years, and either owner-occupied or tenant-occupied property qualifies. Joint owners share credits proportionally based on their ownership interest. Customers who are homeowners or tenants can claim the 15% credit up to $1,000 on net eligible expenses.
This state income tax credit provides a 15% incentive capped at $1,000 per system, calculated on net expenditures (total cost minus federal tax credits and HUD grants). The program targets residential properties in Massachusetts and allows multi-year carryforward (up to three years) for unused credits. Eligibility requires original use by the taxpayer and a reasonable five-year system lifespan.
Program details
- Program ID
- 144
- Effective
- 1/26/1979
- Last updated
- 1/6/2026
Eligibility
- Sectors
- residential
- Technologies
- solar water heat solar space heat solar photovoltaics wind (all) wind (small)
Program summary
Massachusetts allows a 15% credit -- up to $1,000 -- against the state income tax for the net expenditure* of a renewable energy system (including installation costs) installed on an individual’s primary residence. If the credit amount is greater than a resident's income tax liability, the excess credit amount may be carried forward to the next succeeding year for up to three years. Eligible technologies include solar water and space heating, photovoltaics (PV), and wind energy systems. The original use of the system must begin with the taxpayer, and the system should “reasonably be expected to remain in operation for at least five years.”
The credit is available to any owner or tenant of residential property. For a newly constructed home, the credit is available to the original owner/occupant. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Any excess credit amount may be carried over to the next 1-3 taxable years.
* The term "net expenditure" is defined as the total purchase price for any renewable energy source property and installation cost less any federal tax credits and rebates/grants received from the U.S. Department of Housing and Urban Development.
Contact & resources
- Contact email
- dwayne.breger@state.ma.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
