Article: 50554
Overview
If you paid for the repair or replacement of a failed cesspool or septic system at your principal residence in Massachusetts, you may be eligible for the Septic System Repair Credit. This credit helps offset the cost of improving wastewater systems to meet Title 5 environmental standards.
Who Qualifies for the Credit?
You may claim the Septic Credit if:
- The work was performed at your primary Massachusetts residence.
- The system was determined to be a failed cesspool or septic system under Title 5 of the State Environmental Code.
- You were the owner of the residence at the time the work was performed.
- The costs were not reimbursed by a grant, loan forgiveness, or other subsidies.
Note: This credit applies to both full and partial septic system replacements, including upgrades required by local health departments.
Credit Amount & Carryforward
- The maximum total credit is $6,000 per taxpayer.
- You may claim up to 40% of the eligible costs, with a limit of $1,500 per year.
- Unused amounts may be carried forward for up to 5 years until the full $6,000 is claimed.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Massachusetts.
- Click on the Credits tab.
- Select Septic Credit to open the screen.
- Enter all applicable information.
- Click Save once complete.
Additional Resources
For detailed instructions on your Massachusetts return, refer to the official tax guide.