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Tax Credit Available for Title 5 Septic Repairs or Replacement

There is a Massachusetts tax credit available for the repair or replacement of a failed septic system or cesspool for Massachusetts residential property owners.  A maximum credit of $1,500 per year may be taken over four years, up to a total credit of $6,000.

To claim the Title 5 credit, the taxpayer:

  • Must be the owner of the residential property
  • Must occupy the property as his or her principal residence
  • May not be a dependent of another taxpayer
  • Must have a septic system that failed a Title 5 inspection
  • Must complete Massachusetts Schedule SC and include it with their tax return

For more details on the tax credit, contact your tax adviser or the Department of Revenue at 617 887-MDOR or on the web: http://www.mass.gov.

Financial assistance is also available for Title 5 repairs and/or upgrades:

You may contact your local Board of Health for information on whether your town provides low cost financing to homeowners for the repair, replacement, or upgrade of a failed septic system.

Low-cost financing is also offered by The Massachusetts Housing Finance Agency (MHFA) to those who qualify.  For information, call MHFA at 617-723-0500 or look on the web: www.masshousing.com.

Another low-cost financing option for those who qualify is the federal Farmers Home Administration (FHA).  Their phone numbers are:

·      Multi-family homes 202-708-2495
·      Single-family homes 202-708-3175
 
Please be advised that nothing contained herein is meant to be legal or tax advice. Further, we strongly encourage you to seek qualified legal and tax advice regarding your specific situation.

 

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