By Patrick Crowley
Yesterday we started talking about some Massachusetts only tax breaks. Did you recently replace a septic system or connect to your town sewer? If so, there is a septic tax credit that is available to you to offset your Massachusetts income tax. The amount of the credit is 40% of the cost, up to $15,000, for the design and construction expenses to repair or replace a failed septic system or for connecting to a public sewer system. That means you can reduce your Massachusetts income tax dollar for dollar by up to $6,000. However, you’re only allowed to take $1,500 of the credit each year and if you received a low or no interest loan to help pay for the cost, the credit needs to be reduced by the amount of interest subsidy you received. Do you have an older home that has lead paint? If so, you may be eligible for a credit equal to the cost of the removal of the lead paint up to $1,500.
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If you have a question on today’s topic or any tax matter call Hershman, Fallstrom & Crowley at
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