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Cleaner & Green Energy Incentives

Incentives: Leveling the Playing Field

Unfortunately, the prices of fossil fuels and electricity do not account for "true costs."

Imagine if the price of a gallon of gasoline or heating oil reflected military expenditures aimed at securing fuel supplies!

Imagine if the price of a kilowatt-hour covered the environmental and social costs associated with air pollution, fish contamination, water quality degradation, nuclear waste management, habitat destruction, and climate change!

Many incentives are available to encourage energy efficiency and promote renewable energy. They make it easier for you—or your business—to save money and reduce your energy footprint while taking advantage of proven and readily available technologies.

If energy prices told the ecological truth, efficiency would be the rule rather than the exception, and incentives would not be needed to make green energy technologies more affordable (see box).

This page identifies rebates, grants, tax credits, tax exemptions, and other incentives that are available to Cape & Islands consumers—including residents, businesses, and municipalities—through federal, state, and local governments and through electricity and natural gas providers.

This page is under development as of 02.15.06. It incorporates information on many but not all incentives. If the information you need is not available below, please click on the "Feedback" link at the top or bottom of this page and send a specific request via email.

Hybrid, Biodiesel & Other Vehicles
Space Heating & Efficiency
Water Heating & Efficiency
Lighting, Appliance & Equipment Efficiency
Green Power
Solar Energy - Heat & Power
Wind Power
Geothermal Energy - Space Conditioning
Bioenergy - Heat & Power

Disclaimer: The information on this page presented for educational purposes only. Effort has been made to ensure the accuracy of this information; however, it is subject to change or correction. Before making any decisions, consult with state and federal agencies, tax attorneys, accountants, or other experts to determine whether purchases or installations of efficiency and renewable technologies are eligible for specific incentives.

Hybrid, Biodiesel & Other Vehicles
Tax credits are available to reduce the costs of purchasing cleaner vehicles, including those that make each gallon of fossil fuel go further and those that use alternative fuels. The federal incentives are very temporary—if you want to take advantage of them, you may need to act quickly. (For information on choosing the most fuel-efficient vehicle that meets your needs, visit the Fuel Economy Guide website.)

Federal Tax Incentives: After January 1, 2006, individuals who and businesses that buy new hybrid gas-electric and alternative-fuel vehicles are eligible for an income tax credit ranging between $250 and $3400, depending on vehicle fuel economy and weight. Purchases of advanced diesel vehicles and hybrid heavy-duty trucks will also be eligible for this credit once these cleaner options become available. For each vehicle manufacturer, this tax credit will begin to be phased out once it has sold 60,000 eligible vehicles; after this threshold is reached, the credit for that company’s vehicles will be reduced by 50% for a 6-month period and then another 50% (to 25% of the original level) for another 6-month period.

State Tax Incentives: From January 1, 2006 through 2010, individuals who purchase a gas-electric hybrid or an alternative-fuel vehicle powered by ethanol, low-sulfur diesel, compressed natural gas, liquefied natural gas, or hydrogen are eligible for an income tax deduction of $2000. If a company has a fleet of more than 50 vehicles, it will be eligible for a tax credit if at least 10% of its fleet is comprised of alternative-fuel vehicles. This credit is equivalent to half the difference in price between the alternative-fuel vehicles and their conventional gasoline counterparts.

Space Heating & Efficiency
Many incentives exist for purchases of insulation, weatherstripping, programmable thermostats, new windows, and other products that reduce heat losses and use energy wisely. Incentives are also available for investments in more efficient heating equipment, including conventional boilers and furnaces as well as solar thermal and geothermal systems. (For information on energy-efficient products, visit the EnergyStar website.)

Local Incentive Programs: Free energy audits, rebates, and other benefits are just a phone call away for all types of consumers—and the financial incentives available through utility efficiency programs are exempt from federal taxation. Visit the websites of the organizations listed below to identify available incentives and to sign up for an audit:

Keyspan: On the Cape, KeySpan offers services and incentives for heating efficiency measures and fuel switching projects for all classes of consumers; click here to visit the company's website. KeySpan also has just announced a rebate program for solar thermal installations for commercial, industrial, and multi-family housing consumers; click here for an overview and call 781.466.5327 for more information.
Cape Light Compact: On the Cape and Vineyard, Cape Light Compact offers services and incentives for heating efficiency measures and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:
National Grid: On Nantucket, National Grid offers services and incentives for heating efficiency upgrades and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:

Federal, State & Local Tax Incentives: Federal and state legislation passed in 2005 created new, high-value tax incentives for efficiency investments, but they expire soon. Many other incentives have been on the books for a long time.

State Personal Income and Corporate Excise Tax Credit f or Residential Efficiency Measures: Homeowners and members of condominium/cooperative associations who invest in heating efficiency measures and systems before March 31, 2006, are eligible for a state tax credit of the lesser of either 30% of the net cost or $600 ($1000 for multifamily situations). The purchase must be before the end of March, but the residential installation may occur after. The credit may be applied during the 2005 or 2006 tax year, regardless of the date of purchase.

State Personal Income Tax Credit for Residential Solar Thermal Installations: Massachusetts provides a personal income tax credit for individuals who install solar thermal systems in their residences. The system must be new, in compliance with all applicable performance and safety standards, and expected to remain in operation for at least 5 years. The credit is 15% of the net expenditure (including installation) for the system, or $1,000, whichever is less. The credit can be carried over for a period of 3 years if it is greater than one’s state income tax liability in individual years. (M.G.L. c. 62, sec. 6(d))

State Sales Tax Exemption for Purchases of Solar Thermal and Geothermal Energy Systems and Equipment for Residential Installations: Purchases of equipment directly relating to solar thermal or geothermal systems are exempted from the state sales tax if they are to be used as a primary or auxiliary source of energy for heating or otherwise supplying the needs of a person’s principal residence in the state. (M.G.L. c. 64H, sec. 6(dd))

Local Property Tax Exemption for Residential, Commercial, and Industrial Installations of Solar Thermal Systems: Solar thermal systems and devices installed for supplying the energy needs of a residence or business are eligible for an exemption from local property tax. This exemption, which is good for 20 years from the date of system installation, applies only to the value of the renewable energy equipment reflected on the property tax bill, not the full amount of the bill. (M.G.L. c. 59, sec. 5, cl. 45)

State Corporate Income Tax Deduction for Purchases of Solar Thermal Systems and Equipment: Businesses that purchase a solar energy system are allowed to deduct from net income, for state tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H(f))

State Corporate Excise Tax Credit for Purchases of Solar Thermal Systems and Equipment: Businesses that purchase a solar energy system for installation in a commercial building before March 31, 2006, may claim a tax credit of the lesser of either 15% of the purchase and installation cost or $300. Both building owners and lessees are eligible for this credit. The purchase must be before the end of March, but the commercial installation may occur after.

State Corporate Excise Tax Exemption for Purchases of Solar Thermal Systems and Equipment: Businesses that purchase a solar energy system are allowed to deduct from net income, for state excise tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H)

Federal Tax Credit for Residential Efficiency Measures: Residential consumers who purchase and install certain energy-efficient products in or on their principal home between January 1, 2006 and December 31, 2007, are eligible for a tax credit. This credit applies to windows, skylights, insulation, exterior doors, roofs, and heating and cooling equipment. The maximum credit varies by product.

Federal Tax Credit for Residential Solar Thermal Systems & Equipment: Residential consumers who purchase and install solar thermal systems for space heating are eligible for a tax credit of up to 30% of qualifying expenditures, up to a maximum of $2000. Systems must be installed in or on the taxpayer’s principal residence between January 1, 2006 and December 31, 2007.

Federal Energy Conservation Tax Exemption for Homeowners and Owners of Multi-Family Housing: Rebates from utilities (National Grid, Cape Light Compact, Keyspan) to homeowners and owners of multi-family housing for installation of “energy conservation measures” are exempt from federal taxation. Rebates for installations of solar thermal systems also may qualify as 100% exempt under this provision of the federal tax code.

Federal Tax Credit for Business Installations of Solar PV, Solar Thermal, and Other Advanced Energy Systems: Businesses that install qualified fuel cells and solar energy systems are eligible for a 30% tax credit against the purchase price; installations of qualified microturbines are eligible for a 10% credit against the purchase price. This credit is effective from January 1, 2006 to December 31, 2007.

Federal Tax Deduction for Builders/Owners of Energy-Efficient Commercial Buildings: New commercial buildings that use 50% less energy, on an annual basis, relative to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard are eligible for a tax deduction equal to the cost of the energy-efficient property installed during construction. The maximum deduction is $1.80 per square foot; a deduction of $0.60 per square foot is provided for building subsystems.

Water Heating & Efficiency
Many incentives exist for investments in efficiency measures and in new water heating equipment, including solar thermal systems. In addition, tax credits and exemptions are available at the federal, state, and local levels. (For information on energy-efficient products, visit the EnergyStar website.)

Keyspan: On the Cape, KeySpan offers services and incentives for water heating efficiency measures and fuel switching projects for all classes of consumers; click here to visit the company's website. KeySpan also has just announced a rebate program for solar thermal installations for commercial, industrial, and multi-family housing consumers; click here for an overview and call 781.466.5327 for more information.
Cape Light Compact: On the Cape and Vineyard, Cape Light Compact offers services and incentives for water heating efficiency measures and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:
National Grid: On Nantucket, National Grid offers services and incentives for heating efficiency upgrades and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:

Federal, State & Local Tax Incentives: Purchases of solar thermal water heating systems offer a number of tax advantages.

State Personal Income Tax Credit for Residential Solar Thermal Installations: Massachusetts provides a personal income tax credit for individuals who install solar thermal systems in their residences. The system must be new, in compliance with all applicable performance and safety standards, and expected to remain in operation for at least 5 years. The credit is 15% of the net expenditure (including installation) for the system, or $1,000, whichever is less. The credit can be carried over for a period of 3 years if it is greater than one’s state income tax liability in individual years. (M.G.L. c. 62, sec. 6(d))

State Sales Tax Exemption for Purchases of Solar Thermal Systems and Equipment for Residential Installations: Purchases of equipment directly relating to solar thermal systems are exempted from the state sales tax if they are to be used as a primary or auxiliary source of energy for heating or otherwise supplying the needs of a person’s principal residence in the state. (M.G.L. c. 64H, sec. 6(dd))

Local Property Tax Exemption for Residential, Commercial, and Industrial Installations of Solar Thermal Systems: Solar thermal systems and devices installed for supplying the energy needs of a residence or business are eligible for an exemption from local property tax. This exemption, which is good for 20 years from the date of system installation, applies only to the value of the renewable energy equipment reflected on the property tax bill, not the full amount of the bill. (M.G.L. c. 59, sec. 5, cl. 45)

State Corporate Income Tax Deduction for Purchases of Solar Thermal Systems and Equipment: Businesses that purchase a solar energy system are allowed to deduct from net income, for state tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H(f))

State Corporate Excise Tax Exemption for Purchases of Solar Thermal Systems and Equipment: Businesses that purchase a solar energy system are allowed to deduct from net income, for state excise tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H)

Federal Tax Credit for Solar Thermal Systems & Equipment: Residential consumers who purchase and install solar thermal water heating systems (for applications other than swimming pools and hot tubs) are eligible for a tax credit of up to 30% of qualifying expenditures, up to a maximum of $2000. Systems must be installed in or on the taxpayer’s principal residence between January 1, 2006 and December 31, 2007.

Federal Energy Conservation Tax Exemption for Homeowners and Owners of Multi-Family Housing: Rebates from utilities (National Grid, Cape Light Compact, Keyspan) to homeowners and owners of multi-family housing for installation of “energy conservation measures” are exempt from federal taxation. Rebates for installations of solar thermal systems also may qualify as 100% exempt under this provision of the federal tax code.

Federal Tax Credit for Business Installations of Solar PV, Solar Thermal, and Other Advanced Energy Systems: Businesses that install qualified fuel cells and solar energy systems are eligible for a 30% tax credit against the purchase price; installations of qualified microturbines are eligible for a 10% credit against the purchase price. This credit is effective from January 1, 2006 to December 31, 2007.

Federal Tax Deduction for Builders/Owners of Energy-Efficient Commercial Buildings: New commercial buildings that use 50% less energy, on an annual basis, relative to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard are eligible for a tax deduction equal to the cost of the energy-efficient property installed during construction. The maximum deduction is $1.80 per square foot; a deduction of $0.60 per square foot is provided for building subsystems.

Lighting, Appliance & Equipment Efficiency
Many incentives exist for investments in technologies and systems that use electricity and fuels more efficiently. In addition, tax credits and exemptions are available at the federal, state, and local levels. (For information on buying energy-efficient products, visit the EnergyStar website.)

On the Cape, KeySpan offers services and incentives for energy-efficient purchases and fuel switching projects. Click here to visit the company's website.
On the Cape and Vineyard, Cape Light Compact offers services and incentives for energy-efficient purchases and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:
On Nantucket, National Grid offers services and incentives for energy-efficient purchases and fuel switching projects. Click on the links below for information on incentives available to specific consumer classes:

Tax Incentives:

Federal Energy Conservation Tax Exemption for Homeowners and Owners of Multi-Family Housing. Rebates from utilities (National Grid, Cape Light Compact, Keyspan) to homeowners and owners of multi-family housing for installation of “energy conservation measures” are exempt from federal taxation.

Green Power
Consumers who buy "boutique green" products offered in conjunction with the Massachusetts Technology Collaborative Clean Energy Choice program can write off a portion of their purchases as a charitable contribution if they itemize deductions on their tax returns. Green products available through the Cape Light Compact and National Grid's GreenUp Program offer this advantage. For more information on locally available green power products, visit the Tips for Choosing a Power Supplier page.

Solar Energy - Heat & Power
Grants and rebates are available for small- and large-scale solar photovoltaic (PV) systems, which generate electricity. Owners of PV arrays can also take advantage of state renewable energy production incentives. Rebates are available for solar thermal systems installed for space heating or water heating in commercial, industrial, and multi-family applications. A variety of tax incentives are designed to encourage installation of both types of solar energy options.

Solar PV Rebates, Grants & Support Programs: The Massachusetts Technology Collaborative (MTC) administers ratepayer-funded incentive programs for systems of varying sizes.

State Rebates for Residential & Other Small Solar PV Projects (Under 10 kW). The MTC's Small Renewables Initiative offers rebates for both residential and non-residential installations of grid-connected PV systems on existing, renovated, and expanding buildings as well as new construction. Rebates are available to homeowners, schools, and communities, as well as to commercial, industrial, and institutional consumers. The capacity of residential projects is capped at below 3.5 kW and other projects at below 10 kW. To be eligible, facility owners must be pre-approved for a rebate before installation, and more than 90% of the system’s power must be used to meet on-site needs. Rebates are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC. As of 02.01.06, the base incentive for PV installations is $2.50/W; additional incentives, totaling from $0.50 to $2.50/W, may be awarded if projects
- Employ systems or components made in Massachusetts, particularly building-integrated PV technology.
- Are deployed on public buildings, in low-income and affordable housing projects, as backup power systems for critical loads, or in economic target areas.
- Are integrated within new, high-performance construction projects and green buildings.
State Grants for Large Solar PV Projects (Greater Than 10 kW). The MTC’s Large Onsite Renewables Initiative (LORI) offers grants for multi-family residential, commercial, industrial, school, institutional, and community installations of grid-connected PV, wind, fuel cell, hydro, and bioenergy systems. Rated capacity must be more than 10 kW. More than 50% of the system’s power must be used to meet on-site needs. Base incentives range from $1.50 to $4.00/W, depending on technology and application, with a maximum grant of $40,000 for project feasibility studies, $75,000 for design and engineering, and $500,000 for construction. Additional incentives, like the ones offered by MTC for smaller installations, may be awarded based on project-specific characteristics. Grants are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC.

State Financing Support for Large Projects: Owners and developers of larger-scale clean energy facilities may be able to take advantage of another MTC program, which provides risk-hedging contracts to developers and to companies that purchase RECs from eligible facilities. This program encourages generators and brokers to enter into long-term contracts for RECs—either directly with MTC or with other market participants—in order to create a guaranteed revenue stream and improve prospects for project financing. Visit MTC's website for additional information.

Solar PV Production Incentives: Residents, businesses, organizations, and communities installing solar PV systems can reap financial rewards under the state's Renewable Portfolio Standard (RPS). Under the RPS, each kilowatt-hour of electricity generated by a renewable energy system also generates a REC, which can be sold to the MTC, power suppliers, or green power brokers. (Mass Energy is currently purchasing RECs from solar PV systems at a rate of $0.06/kWh.)

Solar Thermal Rebates: KeySpan has just announced a rebate program for solar thermal installations for commercial, industrial, and multi-family housing consumers.

Keyspan: On the Cape, Keyspan offers services and incentives for solar thermal applications - except on single-family residences. Click here for an overview and call 781.466.5327 for more information.

Federal, State & Local Tax Incentives: Purchases of solar PV and solar thermal systems offer a number of tax advantages.

State Personal Income Tax Credit for Residential Solar Installations. Massachusetts provides a personal income tax credit for individuals who install solar PV and/or solar thermal systems in their residences. The system must be new, in compliance with all applicable performance and safety standards, and expected to remain in operation for at least 5 years. The credit is 15% of the net expenditure (including installation) for the system, or $1,000, whichever is less. The credit can be carried over for a period of 3 years if it is greater than one’s state income tax liability in individual years. (M.G.L. c. 62, sec. 6(d))

State Sales Tax Exemption for Purchases of Solar Energy Systems and Equipment for Residential Installations. Purchases of equipment directly relating to PV and solar thermal systems are exempted from the state sales tax if they are to be used as a primary or auxiliary source of energy for heating or otherwise supplying the needs of a person’s principal residence in the state. (M.G.L. c. 64H, sec. 6(dd))

Local Property Tax Exemption for Residential, Commercial, and Industrial Installations of Solar Energy Systems. Solar PV and solar thermal systems and devices installed for supplying the energy needs of a residence or business are eligible for an exemption from local property tax. This exemption, which is good for 20 years from the date of system installation, applies only to the value of the renewable energy equipment reflected on the property tax bill, not the full amount of the bill. (M.G.L. c. 59, sec. 5, cl. 45)

State Corporate Income Tax Deduction for Purchases of Solar Energy Systems and Equipment. Businesses that purchase a solar energy system are allowed to deduct from net income, for state tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H(f))

State Corporate Excise Tax Exemption for Purchases of Solar Energy Systems and Equipment. Businesses that purchase a solar energy system are allowed to deduct from net income, for state excise tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H)

Federal Tax Credit for Solar Energy Systems & Equipment. Residential consumers who purchase and install solar PV and solar thermal heating systems (for applications other than swimming pools and hot tubs) are eligible for a tax credit of up to 30% of qualifying expenditures, up to a maximum of $2000. Systems must be installed in or on the taxpayer’s principal residence between January 1, 2006 and December 31, 2007.

Wind Energy
Grants, rebates, production, and tax incentives are available for small- and large-scale wind energy projects.

Wind Rebates, Grants & Support Programs: The Massachusetts Technology Collaborative (MTC) administers ratepayer-funded incentive programs for systems of varying sizes.

State Rebates for Residential & Other Small Wind Projects (Under 10 kW): The MTC's Small Renewables Initiative offers rebates for both residential and non-residential installations of grid-connected wind turbines on existing, renovated, and expanding buildings as well as new construction. Rebates are available to homeowners, schools, and communities, as well as to commercial, industrial, and institutional consumers. The capacity of all projects is capped at below 10 kW. To be eligible, facility owners must be pre-approved for a rebate before installation, and more than 90% of the system’s power must be used to meet on-site needs. Rebates are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC. As of 02.01.06, the base incentive for wind installations is $2.75/W; additional incentives, totaling from $0.10 to $2.50/W, may be awarded if projects
- Employ systems or components made in Massachusetts.
- Are deployed on public buildings, in low-income and affordable housing projects, as backup power systems for critical loads, or in economic target areas.
- Are integrated within new, high-performance construction projects and green buildings.

State Grants for Large Wind Projects (Greater Than 10 kW): The MTC’s Large Onsite Renewables Initiative (LORI) offers grants for multi-family residential, commercial, industrial, school, institutional, and community installations of grid-connected wind systems. Rated capacity must be more than 10 kW. More than 50% of the system’s power must be used to meet on-site needs. Base incentives range from $1.50 to $4.00/W, depending on technology and application, with a maximum grant of $40,000 for project feasibility studies, $75,000 for design and engineering, and $500,000 for construction. Additional incentives, like the ones offered by MTC for smaller installations, may be awarded based on project-specific characteristics. Grants are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC.

State Grants for Municipal Wind Projects: The MTC’s Community Wind Initiative gives towns and cities the opportunity to secure large grants for pursuing land-based wind energy projects. It offers technical and business services, wind monitoring equipment, construction grants, and other provisions to help interested communities in systematically exploring wind resources and in developing wind energy projects. Numerous Cape & Islands communities are already taking advantage of this program, as described on this website's Community Wind page. Grants are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC.

State Financing Support for Large Projects: Owners and developers of larger-scale clean energy facilities may be able to take advantage of another MTC program, which provides risk-hedging contracts to developers and to companies that purchase RECs from eligible facilities. This program encourages generators and brokers to enter into long-term contracts for RECs—either directly with MTC or with other market participants—in order to create a guaranteed revenue stream and improve prospects for project financing. Visit MTC's website for additional information.

Wind Energy Production Incentives: Both state and federal policies create production incentives for wind generation.

State: Residents, businesses, organizations, and communities installing a wind energy system can reap financial rewards from the Massachusetts Renewable Portfolio Standard (RPS). Under the RPS, each kilowatt-hour of electricity generated by a renewable energy system also generates a REC, which can be sold to the MTC, power suppliers, or green power brokers.

Federal:

Federal, State & Local Tax Incentives: Installations of wind energy systems offer a number of tax advantages.

State Personal Income Tax Credit for Residential Wind Installations: Massachusetts provides a personal income tax credit for individuals who install wind energy systems in their residences. The system must be new, in compliance with all applicable performance and safety standards, and expected to remain in operation for at least 5 years. The credit is 15% of the net expenditure (including installation) for the system, or $1,000, whichever is less. The credit can be carried over for a period of 3 years if it is greater than one’s state income tax liability in individual years. (M.G.L. c. 62, sec. 6(d))

State Sales Tax Exemption for Purchases of Wind Energy Systems and Equipment for Residential Installations: Purchases of equipment directly relating to wind systems are exempted from the state sales tax if they are to be used as a primary or auxiliary source of energy for heating or otherwise supplying the needs of a person’s principal residence in the state. (M.G.L. c. 64H, sec. 6(dd))

Local Property Tax Exemption for Residential, Commercial, and Industrial Installations of Wind Energy Systems: Wind energy systems and devices installed for supplying the energy needs of a residence or business are eligible for an exemption from local property tax. This exemption, which is good for 20 years from the date of system installation, applies only to the value of the renewable energy equipment reflected on the property tax bill, not the full amount of the bill. (M.G.L. c. 59, sec. 5, cl. 45)

State Corporate Income Tax Deduction for Purchases of Wind Energy Systems and Equipment: Businesses that purchase a wind energy system are allowed to deduct from net income, for state tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H(f))

State Corporate Excise Tax Exemption for Purchases of Wind Energy Systems and Equipment: Businesses that purchase a wind energy system are allowed to deduct from net income, for state excise tax purposes, any costs incurred from buying, installing, and operating the unit, provided the installation is located in Massachusetts and is used exclusively in the trade or business of the corporation. The exemption is in effect for the length of the system’s depreciation period. (M.G.L. c. 63, sec. 38H)

Geothermal Energy - Space Conditioning
Federal: tax credits for installations

State Sales Tax Exemption for Purchases of Geothermal Energy Systems and Equipment for Residential Installations
Purchases of equipment directly relating to geothermal systems are exempted from the state sales tax if they are to be used as a primary or auxiliary source of energy for heating or otherwise supplying the needs of a person’s principal residence in the state. (M.G.L. c. 64H, sec. 6(dd))

Bioenergy - Heat & Power
Federal: tax credits for installations

State Grants for Large Bioenergy Projects (Greater Than 10 kW)
The MTC’s Large Onsite Renewables Initiative (LORI) offers grants for multi-family residential, commercial, industrial, school, institutional, and community installations of grid-connected bioenergy systems. Eligible bioenergy fuels include landfill gas, biodiesel, wood, agricultural and food wastes, energy crops, biogas, and refuse-derived organic materials. Rated capacity must be more than 10 kW. More than 50% of the system’s power must be used to meet on-site needs. Base incentives range from $1.50 to $4.00/W, depending on technology and application, with a maximum grant of $40,000 for project feasibility studies, $75,000 for design and engineering, and $500,000 for construction. Additional incentives, like the ones offered by MTC for smaller installations, may be awarded based on project-specific characteristics. Grants are awarded to owners without affecting their ability to sell RECs to suppliers, brokers, or the MTC.