(Massachusetts) Renewable Energy Property Tax Exmeption


Massachusetts law provides that solar-energy systems and wind-energy systems used as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of taxable property are exempt from local property tax for a 20-year period. Hydropower facilities are also exempt from local property tax for a 20-year period if a system owner enters into an agreement with the city or town to make a payment (in lieu of taxes) of at least 5% of its gross income in the preceding calendar year.

This incentive applies only to the value added to a property by an eligible system, according to the Massachusetts Department of Energy Resources (DOER). It does not constitute an exemption for the full amount of the property tax bill.

Any components of the energy system that serve dual purposes (for example: structural and energy) are not eligible for the exemption. For instance, windows, thermal drapes and floors are not eligible for the exemption. However, thermal storage rods, storage boxes, fan systems, and duct work that function exclusively as part of the energy system are eligible for the exemption.

Program Overview:
State: Massachusetts
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Hydroelectric
Applicable Sectors: Commercial, Industrial, Residential, Agricultural
Amount: 100% exemption for 20 years.
Maximum Incentive: Not specified.
Start Date: 1975
Web Site: http://www.state.ma.us/doer
Authority 1:
Date Enacted:
M.G.L. ch. 59 § 5 (45, 45A)
1975 (subsequently amneded)
Authority 2:
Date Enacted:
Informational Guideline 84-209

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