Excise Tax Deduction for Solar or Wind Powered Systems

February 14, 2024

Summary

In Massachusetts, businesses may deduct from net income, for state excise tax purposes, expenditures paid or incurred from the installation of any "solar or wind powered climate control unit and any solar or wind powered water heating unit or any other type unit or system powered thereby," including labor expenditures. The installation must be located in Massachusetts and used exclusively in the business or trade of the business. Certain criteria must be met, see the Massachusetts Department of Revenue guidance for more information.

Furthermore, a system or unit that qualifies for this deduction will not be taxed under the tangible property measure of the state's corporate excise tax. This exemption is effective for the length of the equipment's depreciation period. A corporation may not take both this deduction and any other state credit against tax with respect to the same property.

Note: For information about what constitutes the corporate excise tax, please visit the official Massachusetts website.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Massachusetts
Incentive Type:	Corporate Tax Deduction
Web Site:	https://www.mass.gov/business-taxes
Administrator:	Massachusetts Department of Revenue
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Thermal Process Heat Wind (All)
Incentive Amount:	100%
Maximum Incentive:	None specified

Incentives

This program has 1 incentives

Technologies:	Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Wind (All)
Sectors:	Commercial, Industrial
Parameters:	The incentive is 100.00 %

Authorities

Name:

MGL ch. 63, § 38H

Contact

Name:	Massachusetts Department of Revenue
Address:	P.O. Box 7010 Boston MA 02204
Phone:	(800) 392-6089

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.