Residential Renewable Energy Income Tax
Massachusetts homeowners with renewable energy systems will receive 15% coverage of their Venture Solar system against their Massachusetts income tax with a $1,000 maximum credit amount.
The Massachusetts SMART Program makes solar accessible to everyone. The state pays electric Eversource, National Grid, and Unitil customers a fixed rate (from 29 to 31 cents depending on your location and utility) per kilowatt-hour that their solar system produces over 10 years. Incentive rates are higher for lower-income families that install battery storage with their system.
State Solar Tax Exemptions
Homeowners who install solar systems are 100% exempt from Massachusetts sales taxes and 100% exempt from property taxes for 20 years. That’s big deal because installing a solar system on your home increases the property value of your home.
Net metering allows you to store energy your panels produce in the electric grid for use at a later date (for example, excess energy produced in July can be used in December), decreasing your electricity bill and putting money back in your pocket.
Federal Investment Tax Credit
The federal government offers a tax credit that covers 26% of the cost of your solar energy system. This isn’t a write-off or a deduction, but an actual dollar for dollar credit against your income taxes. You can claim all of this in one year and will come back to you in the form of a larger income tax return. It is a very simple form that you or your tax preparer can file called Form 5695.