Massachusetts: tax incentives, credits and advisors
Massachusetts adds a 4% surtax on taxable income above an inflation-adjusted threshold, which makes the timing of large income events, such as a business sale, especially important. It also has a small personal income tax credit for residential solar.
Facts checked 2026-10-26 against the official sources linked below.
State incentives
Renewable energy items we cover in depth; the full catalog by category follows.
Residential renewable energy income tax credit
An owner or tenant who occupies a Massachusetts home as a principal residence can claim a credit equal to 15% of the net expenditure for qualifying solar or wind property, up to $1,000. Unused credit can be carried over for up to three years.
Sources: 830 CMR 62.6.1, Residential Energy Credit (Mass. DOR)
Below are the major Massachusetts incentives we could verify against an official source, grouped by type. This is not an exhaustive list of every state program. Credits flagged Transferable can be sold or assigned to another taxpayer under state rules; see transferable state tax credits. Each row shows the date we last checked it.
Massachusetts film and media incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Film incentive tax credit | Credit | Motion picture production companies with at least $50,000 of Massachusetts production expenses in a 12-month period | 25% of qualifying Massachusetts payroll and 25% of Massachusetts production expenses (production credit requires more than 75% of expenses and 75% of filming days in Massachusetts) | Transferable: Yes | Yes, 90% at the producer's election (not for transferees) | Active; made permanent by the FY22 budget | Mass. DOR, Film Incentive Tax Credit; Mass. DOR, TIR 22-5 Last verified 2026-10-26 |
Massachusetts historic and building rehabilitation incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Historic rehabilitation tax credit | Credit | Taxpayers rehabilitating a certified historic structure, certified by the Massachusetts Historical Commission | Up to 20% of qualified rehabilitation expenditures; statewide cap $110 million a year from 2024; 5-year carryforward | Transferable: Yes | No | Active through December 31, 2030 | M.G.L. c. 62, §6J; Mass. DOR, TIR 24-16 Last verified 2026-10-26 |
Massachusetts brownfield and redevelopment incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Brownfields tax credit | Credit | Individuals, nonprofits and businesses cleaning up contaminated property they own or lease for business use in an economically distressed area | 25% of net response and removal costs (50% if no activity and use limitation); 5-year carryforward | Transferable: Yes | Not stated | Active; cleanup must begin by August 5, 2028 and costs be incurred before January 1, 2029 | Mass. DOR, Brownfields Tax Credit; Mass. tax expenditure budget FY26, 2.608 Last verified 2026-10-26 |
Massachusetts research and development incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Life sciences tax incentives | Credit | Life sciences companies certified by the Massachusetts Life Sciences Center | Several credits, including a 10% investment tax credit on qualifying property; amounts awarded under the program | Not stated | Yes, 90% of excess for refundable versions | Active; awards subject to the program | Mass. DOR, Life Science Credits Last verified 2026-10-26 |
Massachusetts housing incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Low-income housing tax credit (state) | Credit | Investors in qualified low-income housing projects in Massachusetts, or donors of property for such projects | Amount set by the Executive Office of Housing and Livable Communities under IRC §42 rules; donation credit generally 50% of value (up to 65%); statewide cap $60 million a year from 2023 | Transferable: Yes | No | Active | Mass. tax expenditure budget FY26, 2.609; Mass. DOR, Low-Income Housing Tax Credit Last verified 2026-10-26 |
Massachusetts charitable giving incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Conservation land tax credit | Credit | Donors of certified land or conservation restrictions to a conservation agency; pre-approval by the Executive Office of Energy and Environmental Affairs required | 50% of the fair market value of the donation, up to $75,000; program cap $2 million a year | No | Yes | Active | Mass. DOR, Conservation Land Tax Credit; Mass. EEA, Commonwealth Conservation Land Tax Credit Last verified 2026-10-26 |
Massachusetts agriculture incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Dairy farmer tax credit | Credit (refundable) | Taxpayers holding a Massachusetts dairy farmer registration | Based on milk produced and sold when the federal milk marketing order price drops below a trigger price; credits under this section and the corporate equivalent are capped at $8 million a year in total | Not stated | Yes; excess is paid 100% without interest | Active | M.G.L. c. 62 §6(o) Last verified 2026-10-26 |
State income tax notes
- A 4% surtax applies to taxable income above the surtax threshold, which is $1,107,750 for tax year 2026 ($1,083,150 for 2025). Only the excess over the threshold is subject to the surtax. (Source: Mass.gov, Massachusetts 4% Surtax on Taxable Income (updated June 1, 2026))
Advisors located in Massachusetts
- FinAccurate LLC Woburn, MA
- Newburg | CPA Waltham, MA
Listed alphabetically by the location on each advisor's public listing; not a recommendation. Many firms also serve clients in other states.
Sponsors headquartered in Massachusetts
- Cherrytree Group, LLC Newton, MA
Each sponsor page shows its evidence score and any public-record flags.
Related strategies
- Solar Investment Credits IRS scrutiny: Yellow/Orange
- Purchased Energy Credits IRS scrutiny: Yellow/Orange
- Donor-Advised Funds IRS scrutiny: Green
- Charitable Remainder Trusts IRS scrutiny: Yellow
- Monetized Installment Sales IRS scrutiny: Red
Related guides
- How to reduce taxes on W-2 income in 2026: what works, what usually does not
- Buying transferable solar tax credits as an individual: how §6418 works and who it fits
- How to find and vet a tax mitigation advisor: credentials, questions and red flags
- How state tax credit transfers work: minimum prices, notices, buyer limits and state examples
- Pass-through entity tax and the SALT cap in 2026: what changed and what did not
- How states tax capital gains and passive income in 2026: California, Washington, Massachusetts, Texas and more
Common questions
What is the Massachusetts millionaires tax threshold for 2026?
The 4% surtax applies to taxable income above $1,107,750 for tax year 2026. Only the amount above the threshold is subject to the surtax.
Does Massachusetts have a solar tax credit?
Yes. A principal-residence owner or tenant can claim 15% of the net expenditure for qualifying solar or wind property, up to $1,000, with a three-year carryover.
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