Excise Tax Deduction for Solar- or Wind-Powered Systems (Massachusetts)

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Last modified on December 17, 2014.

Financial Incentive Program

Place Massachusetts

Name Excise Tax Deduction for Solar- or Wind-Powered Systems
Incentive Type Corporate Deduction
Applicable Sector Commercial, Industrial
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100%

Maximum Incentive None specified

Program Administrator Massachusetts Department of Revenue
Website http://www.mass.gov/dor/businesses/current-tax-info/guide-to-corporate-excise-tax/deductions.html#solar
Date added to DSIRE 2000-01-01
Last DSIRE Review 2013-02-21

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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 climatic 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.

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

Incentive Contact

Contact Name Tax Information
Department Massachusetts Department of Revenue

Address P.O. Box 701

Place Boston, Massachusetts
Zip/Postal Code 02204
Phone (800) 392-6089

Website http://www.dor.state.ma.us

Authorities (Please contact the if there are any file problems.)

Authority 1: MGL ch. 63, § 38H

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"