Renewable Energy Equipment Sales Tax Exemption
Administered by Department of Revenue
You can purchase qualifying renewable energy equipment—solar panels, solar water heaters, wind turbines, and geothermal heat pumps—without paying Massachusetts state sales tax if it will heat or power your primary residence. Complete Massachusetts Tax Form ST-12 and present it to your vendor at the time of purchase to claim the exemption.
When selling renewable energy equipment (solar, wind, or geothermal heat pump systems) for residential use, you can process the sale tax-exempt if the homeowner completes and presents Form ST-12 at purchase, reducing their cost and making your offering more competitive.
This sales tax exemption removes the state sales tax burden on specified renewable technologies—solar thermal and PV, wind, and geothermal heat pumps—for residential primary heating or power applications. Administration occurs at point of sale via Form ST-12 submission; the program targets homeowners investing in on-site renewable systems.
Program details
- Program ID
- 145
- Last updated
- 1/6/2026
Eligibility
- Sectors
- residential
- Technologies
- solar water heat solar space heat solar photovoltaics wind (all) geothermal heat pumps wind (small)
Program summary
Massachusetts law exempts from the state's sales tax "equipment directly relating to any solar, wind powered; or heat pump system, which is being utilized as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of an individual's principal residence in the commonwealth."
Massachusetts Tax Form ST-12 is available on the Massachusetts Department of Revenue web site. The form may be completed and presented to the vendor at the time of purchase.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
