As temperatures cool and homeowners brace for another New England winter, it’s time to think about ways to save on energy costs. Aside from turning down the thermostat and piling on the sweaters, Massachusetts tax credits and state rebates could help you avoid a chill-inducing bill.
We’ve rounded up several options for Massachusetts homeowners to consider.
- Residential Renewable Energy Income Tax Credit: If you install a renewable-energy system (such as solar water and space heating, photovoltaics or wind-energy systems) in your home, then you may be eligible for a 15 percent state tax credit totalling up to $1,000. Any excess tax credit left over may be carried forward for up to three years.
- Renewable Energy Property Tax Exemption: Solar-energy systems and wind-energy systems that supply heat or other energy to a taxable property are exempt from local property taxes for 20 years. The exemption applies to the value added to the property, not the full property tax; any dual-purpose components (such as windows or thermal drapes) are not eligible.
- Renewable Energy Equipment Sales Tax Exemption: Massachusetts exempts renewable energy equipment such as geothermal heat pumps and solar space heaters from sales tax. Complete Massachusetts Tax Form ST-12 [PDF] and submit it to your vendor when you purchase the system.
- Commonwealth Small Pellet Boiler Grant Program: Install a high-efficiency, low-particulate matter wood pellet boiler or furnace in your home ,and you could receive a grant of up to $15,000. The base grant is $7,000 and adders are available for criteria such as thermal storage ($2,000) or moderate income ($2,000). Grants are awarded on a first-come, first-served basis.
- Commonwealth Solar Hot Water Residential Program: Through the Commonwealth Solar Hot Water Pilot Program, rebates are available for installing residential solar hot water systems. The residence must be occupied year round, and the maximum incentive is $3,500 per building or 25 percent of the total installed costs. You may be eligible for an additional $1,500 to cover the costs of a meter installation if you sign up for the MassCEC performance monitoring program.
- Commonwealth Solar II: This program provides rebates on photovoltaic systems in homes and businesses to the system owner. The base incentive is $.40/watt and adders are available for moderate home values, moderate income and Natural Disaster Relief.
- Commonwealth Woodstove Change-Out Pilot Program: Residents with a non-EPA-certified wood-, wood-pellet-, or coal-burning stove can receive help with the cost of replacing it for a high-efficiency, low-emissions wood stove or fireplace insert, or a wood-pellet stove or fireplace insert. Under this program, the maximum rebate is $2,000 for low-income residents and $1,000 for other residents.
Individual utility providers may offer their own utility rebates or zero-percent financing loans as well, so it pays to explore all of your options to maximize your potential savings.