Schedule Ec - Solar And Wind Energy Credit

Schedule EC Instructions

General Information

• windmills,

Massachusetts General Laws, Chapter 62, section 6(d) allows any

• wind-driven generators and

owner or tenant of residential property located in Massachusetts,

• power conditioning and storage devices.

who is not a dependent of another taxpayer and who occupies the

property as his/her principal residence, a credit equal to 15% of the

Note: The following renewable energy source costs are not al-

net expenditure for renewable energy source property (installed on

lowed (830 CMR 62.6.1):

or after January 1, 1979) or $1,000, whichever is less.

• heating and cooling systems, other than solar or wind, that sup-

The maximum allowable credit for a taxpayer is $1,000 during the

plement renewable energy source equipment;

entire time the taxpayer resides in the same principal residence. In

calculating the available credit amount, the taxpayer must subtract

• energy storage mediums for nonessential functions, e.g. swim-

from the $1,000 maximum any energy credit previously taken on

ming pools;

that residence.

• expenditures for heat pumps (air and water), wood burning stoves

The address of principal residence in Massachusetts must be the

or furnaces;

actual street address of the residence, not a PO box. A summer or

• materials and components that have a structural function or are

vacation home does not qualify as a principal residence. Property

structural components; and

placed in a rental unit by a landlord does not qualify for the credit.

Joint owners, who occupy residential property as their principal

• energy conservation expenditures for insulation, storm or thermal

residence, share any credit available to the property in the same

windows or doors, caulking or weatherstripping, etc.

proportion as their ownership interests. A condominium or cooper -

Line 2. Enter the amount of any U.S. HUD grant or rebate related

ative housing corporation dwelling unit may qualify. (See 830 CMR

to renewable solar and wind energy source property installed in

62.6.1). In the case of new construction, the credit is available to

your principal Massachusetts residence.

the original owner-occupant.

Lines 5 through 8. Complete all appropriate lines to determine

Note: If you moved during the taxable year and had more than one

the amount of credit available this year.

principal residence that qualified for the Energy Credit during the

same taxable year, you must file a separate Schedule EC for each

Lines 9 through 11. If the amount of energy credit available in

of those principal resi dences. However, the maximum amount of

line 8 is more than your total tax in line 9, less any Limited Income

the combined Sched ule EC credits cannot exceed $1,000.

Credit and/or Credit for Taxes Paid to Other Jurisdictions, the ex-

cess may be carried over three succeeding years. Excesses are

To take the credit for a renewable energy source item:

not refundable.

• you must be the first one to use the item;

Note: You must complete and enclose Schedule EC with your

• it must be expected to last five years; and

return. Failure to do so will result in this credit being disallowed on

your tax return and an adjustment of your reported tax.

• it must meet the performance and quality standards prescribed

by the Commissioner of Revenue.

What If I Am Taking the Solar and

Wind Energy Credit and Another Credit

Expenditures are generally treated as made when the installation

is completed. Further information about restrictions and qualifica-

On My Tax Return?

tions may be found in 830 CMR 62.6.1.

If you are taking another credit in addition to the Solar and Wind

Energy Credit on your tax return, you must reduce the amount of

Line Instructions

tax reported in line 9 of Schedule EC (from Form 1, line 28 or Form

Line 1. Enter the cost, including installation, of the renewable

1-NR/PY, line 32 or Form 2, line 41) by any Limited Income Credit

energy source properties for your principal residence. Qualified re -

and/or Credit for Taxes Paid to Other Jurisdiction and any other

newable energy source property is property which transmits or uses

credits you may be eligible for. These include, but are not limited to:

solar energy for heating or cooling, for providing hot water or elec-

the Lead Paint Credit, Economic Opportunity Area Credit, Septic

tricity, or which uses wind energy to generate electricity or mechani -

Credit, Brownfields Credit, Low Income Housing Credit, His toric Re -

cal forms of energy for non-business residential purposes.

habilitation Credit, Film Incentive Credit, Medical Device Credit and

Examples of renewable solar and wind energy items include:

Employer Wellness Program Credit.

• collectors,

Note: It is more advantageous to use the credit(s) that is going to

expire first.

• rock beds and

• heat exchangers.

Schedule Ec - Solar And Wind Energy Credit - 2014 Page 2

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