What Credits Are Available on a Massachusetts Return?

Massachusetts offers several tax credits that can help reduce your state income tax or increase your refund. Depending on the credit, you may need to complete an additional schedule and include it with your return.

Brownfields Tax Credit (Schedule CMS)

You may qualify for the Brownfields Tax Credit (BTC) if you incurred costs to clean up contaminated property in Massachusetts.

• Credit equals 25% or 50% of qualifying cleanup expenses.
• Available to eligible taxpayers and certain nonprofit organizations.

Certified Housing Development Tax Credit (Schedule CMS)

If you invest in qualified Massachusetts housing development projects, you may be eligible for this credit.

• Credit equals 25% of qualified project expenditures.
• The credit is generally allowed only in the year the project is completed.

Community Investment Tax Credit (Schedule CMS)

You may qualify if you make a cash contribution to an approved community partner or community partnership fund.

• Credit equals 50% of the contribution amount.
• Contributions must generally be at least $1,000 to qualify.

Conservation Land Tax Credit (Schedule CMS)

If you donate certified land to a qualified conservation agency in Massachusetts, you may be eligible for this credit.

• Credit equals 50% of the fair market value of the donated land.
• Maximum credit is $75,000.

Dairy Farmer Tax Credit (Schedule CMS)

Massachusetts dairy farmers may qualify for a credit when milk prices fall below a state-established benchmark.

• The annual statewide credit program is capped at $8 million.

Farming and Fisheries Credit (Schedule CMS)

Taxpayers engaged in farming, agriculture, or fishing may qualify for a credit equal to:

• 3% of the cost or federal tax basis of qualifying property acquired, constructed, or erected during the tax year.

The property must be used exclusively in farming, agriculture, or fishing activities.

Historic Rehabilitation Credit (Schedule CMS)

You may qualify if you incur eligible expenses rehabilitating a certified historic structure.

• Credit may equal up to 20% of qualified rehabilitation expenditures.
• The structure must receive final certification and be placed in service.

Lead Paint Tax Credit (Schedule LP)

Owners of residential property built before 1978 may qualify if they paid for lead paint removal or containment.

• Credit may be up to $3,000 per residential unit, depending on the work performed.

Low-Income Housing Tax Credit

Taxpayers who invest in approved low-income housing projects may qualify.

• Projects must be approved by the Massachusetts Department of Housing and Community Development (DHCD).
• Credit amounts vary based on the investment.
• The housing project generally must remain low-income housing for at least 30 years.

Low-Income Housing Donation Tax Credit

You may be eligible if you make a qualified donation of real or personal property to certain nonprofit organizations for approved housing projects.

• Credit is generally limited to 50% of the qualified donation.

Septic System Tax Credit (Schedule SC)

Homeowners may qualify for a credit for expenses incurred to comply with Massachusetts septic system requirements.

Requirements include:

• The property must be your principal residence.
• The property must be located in Massachusetts.

Additional details:

• Maximum credit is $18,000.
• Unused credit may generally be carried forward for up to five years.

Solar and Wind Energy Credit (Schedule EC)

If you install qualifying solar or wind energy equipment in your Massachusetts home, you may qualify for this credit.

• Maximum credit is $1,000.

Senior Circuit Breaker Credit (Schedule CB)

Massachusetts residents age 65 or older may qualify for a refundable credit based on property taxes or rent paid for their principal residence.

• For tax year 2026, the maximum credit is $2,820.
• Income and property value limitations apply.

Other Massachusetts Credits

Additional credits may include:

• Apprenticeship Credit
• Climatetech Capital Investment Credit
• Climatetech Incentive Jobs Credit
• Climatetech Qualified Research Credit
• Commercial Conversion Credit
• Cranberry Bog Renovation Credit
• Disability Employment Tax Credit
• Economic Development Incentive Program (EDIP) Credits
• Film Incentive Credit
• Life Sciences Credits
• Live Theater Credit
• Massachusetts Homeownership Credit
• National Guard Employee Credit
• Offshore Wind Credits
• Pass-Through Entity Excise Credit
• Research Credit
• Training Tax Credit
• Veteran's New Hire Tax Credit

How Do I Enter Massachusetts Credits in the Program?

To enter Massachusetts credits:

1. Select State.
2. Select Massachusetts Return.
3. Select Credits.

Choose the credit that applies to your situation and complete any required schedules or supporting documentation. Some credits require certificates, additional forms, or specific documentation to be included with the return.