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Massachusetts solar tax credit and the solar and heat pump tax exemptions open

Q: Where do you apply for Massachusetts solar tax credit and the solar and heat pump tax exemptions?

Credit (state budget summary): https://budget.digital.mass.gov/govbudget/fy27/tax-expenditure-budget/personal-income-tax/credits-against-tax/1-601/; Sales tax exemption: https://budget.digital.mass.gov/govbudget/fy27/tax-expenditure-budget/sales-tax/exemptions-for-specified-uses-of-products-services/3-405/; Property tax law: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter59/Section5.

Administered by the Massachusetts Department of Revenue (income and sales tax) and your city or town's assessor (property tax).

Massachusetts gives homeowners and tenants an income tax credit of 15% of the net cost of a solar or wind system, up to $1,000, with three more years to use what is left. Equipment for solar, wind and heat pump systems at a principal residence is exempt from sales tax, and a solar system sized to the property is exempt from local property tax for 20 years.

source · verified 3 October 2026 · amounts in US dollars

What it pays

Three state tax breaks
Break	What it covers	Law
Income tax credit	15% of the net expenditure on solar or wind energy property, or $1,000, whichever is less; the excess carries forward three years	M.G.L. c. 62, s. 6(d)
Sales and use tax exemption	Equipment directly relating to a solar, wind or heat pump system that heats or powers a principal residence	M.G.L. c. 64H, s. 6(dd)
Property tax exemption	Solar or wind systems, alone or with storage, producing no more than 125% of the property's electricity needs or 25 kW or less; 20 years	M.G.L. c. 59, s. 5, clause 45

Net expenditure is the purchase price and installation cost, less certain federal credits and grants. Joint owners share the credit in proportion to their ownership.

Who is eligible

credit: who: An owner or tenant who lives in the home as a principal residence and is not someone else's dependent; for a newly built home, the original owner-occupant.
credit: what: Property that uses solar energy to heat, cool or supply hot water, or makes electricity, or wind energy for the home, new to you and expected to keep working at least five years.
sales tax: Applies at purchase to equipment for a solar, wind or heat pump system serving a principal residence.
property tax: Owned or leased systems; larger systems can qualify through a payment-in-lieu-of-taxes agreement with the town.

Where the application goes

Claim the credit on your state income tax return; the sales tax exemption applies when you buy, and your assessor handles the property tax exemption.

Where the application goes
If this is you	Apply here
Credit (state budget summary)	budget.digital.mass.gov
Sales tax exemption	budget.digital.mass.gov
Property tax law	malegislature.gov

The thing most pages get wrong

Massachusetts' sales tax exemption is usually described as a solar break. The law also covers heat pumps: it exempts 'equipment directly relating to any solar, windpowered; or heat pump system' used to heat or power a principal residence.

No federal credit to pair it with

The federal Residential Clean Energy Credit ended for systems placed in service after 31 December 2025, and the federal efficiency credit that covered heat pumps ended with 2025.

Other solar help

The state energy department's SMART program pays solar owners through their installers; its rates are not covered here. Cape Light Compact's solar loan has allocated its first-phase money, with a second phase planned for late 2026 if funding allows.