The following credits can be claimed on a Massachusetts state tax return.
Brownfields Tax Credit
Massachusetts taxpayers subject to tax, and nonprofit organizations may be eligible to claim a Brownfields Tax Credit for amounts expended to clean up contaminated property in MA in an amount equal to either 25% or 50% of the cost.
Certified Housing Development Tax Credit
If you are subject to tax and invest in housing development projects in the state of Massachusetts, you may be eligible to claim the Certified Housing Development Credit. The amount of this credit is equal to 25% of the costs of qualified project expenditures as defined in MGL Ch. 40V, Sec. 1.
Community Investment Tax Credit
You may be eligible to claim the Community Investment Tax Credit for cash contributions made to a community partner to support the implementation of its community investment plan, or to a community partnership fund.
This credit is equal to 50% of the total contribution amount made by the taxpayer and cannot be claimed for contributions less than $1,000.
Conservation Land Tax Credit
If you make qualified donations of certified land to a public or private conservation agency within the state of Massachusetts, you may be eligible to claim this credit.
This credit is equal to 50% of the fair market value of the donated land, and may not exceed $75,000.
Dairy Farm Tax Credit
Dairy farmers in the state of Massachusetts may be eligible to claim this credit based on the amount of milk that is produced and sold during the tax year when the cost of milk drops below a price based on federal standards.
The total amount of this credit may not exceed $6,000,000 within any given year.
Farming and Fisheries Credit
If you are engaged in agriculture or farming, and are subject to tax, you may be eligible to claim this credit equal to 3% of the cost, or other basis for federal income tax purposes of qualifying property acquired, constructed or erected during the tax year.
Historical Rehabilitation Credit
If you have made qualified expenditures in the rehabilitation of a qualified historic structure, you may be eligible to claim this credit.
This credit is equal to up to 20% of the rehabilitation expenditures made in rehabilitating a historic structure that has received final certification from the Massachusetts Historical Commission, and placed into service.
Lead Paint Tax Credit
If you own a home or another form of residential premises within the state of Massachusetts, and it was constructed prior to 1978, you may be eligible to claim this credit if you incurred expenses for covering or removing lead paint on this premises.
This credit is equal to up to $1,500 for each residential unit.
Low Income Housing Tax Credit
If you invested in a qualified low-income housing project located in Massachusetts, you may be eligible to claim this credit.
The MA Department of Housing and Community Development (DHCD) determines which low-income housing projects qualify for this credit, and allocates the amount of credit a taxpayer can receive based on a total pool of $40,000,000.
Low Income Housing Donation Tax Credit
If you made a "qualified donation" of real or personal property to certain non-profit entities for use in purchasing, constructing, or rehabilitating a "qualified Massachusetts project," you may be eligible to claim this credit.
This credit is limited to 50% of the amount of the "qualified donation," which may may be increased by the DHCD.
Septic System Tax Credit
If you own or occupy a residential property located within Massachusetts, and it is your principal residence, you may be eligible to claim this credit.
You can claim up to $1,500 per taxable year for expenses incurred to comply with the sewer system requirements of Title V.
Solar and Wind Energy
If you made modifications to your home for certain renewable energy source items, such as equipment which uses or transmits solar or wind energy to heat, cool, or provide hot water, you may be eligible to claim this credit.
To enter this credit within the program, please go to:
- State Section
- Massachusetts Return
For additional information regarding Massachusetts credits, please refer to the instructions for MA Form 1.
Circuit Breaker Credit
Senior citizens over the age of 65, may be eligible to claim a refundable credit on their Massachusetts personal income tax. This credit is based on the real estate taxes that are paid on your residential property owned or rented in Massachusetts and occupy as your main residence.