Schedule EC: Solar and Wind Energy Credit (2024)

Who files this form

Complete Schedule EC if you are claiming the Massachusetts Solar and Wind Energy Credit.

You may qualify if you:

• Own or rent residential property in Massachusetts and occupy it as your principal residence.
• Are not another taxpayer’s dependent.
• Have qualifying solar or wind energy property installed for non-business residential use.

You must be the first person to use the energy item. It must be expected to last five years and meet the performance and quality standards prescribed by the Commissioner of Revenue.

A summer or vacation home does not qualify. Equipment placed in a rental unit by a landlord does not qualify. A condominium or cooperative dwelling unit may qualify. For new construction, the credit is available to the original owner-occupant.

What you'll need

Have the following information ready:

• Your name as shown on Massachusetts Form 1 or Form 1-NR/PY, Social Security number, and the street address of your principal Massachusetts residence.
• The cost of qualifying solar or wind energy property installed in 2024, including installation costs.
• A statement describing the expenditures, which you must enclose.
• The amount of any related U.S. HUD grant or rebate.
• The total energy credit previously taken for the same residence.
• Your 2023 Schedule EC if you have unused credits from prior years.
• Your tax amount and information about other credits needed to complete line 9.

You will also need the Credit Manager Schedule to report the allowable credit from line 10.

How to file

• Complete Schedule EC and enclose it with your tax return.
• Enclose a statement describing the expenditures reported on line 1.
• Enter the allowable credit from line 10 on the Credit Manager Schedule. Line 10 is the smaller of lines 8 and 9, and cannot exceed $1,000.
• Complete line 11 if line 8 exceeds line 10 or you have unused credits from prior years.

If you moved during 2024 and had more than one qualifying principal residence, file a separate Schedule EC for each residence. The combined Schedule EC credits cannot exceed $1,000.

The supplied text does not give a mailing address or e-filing instructions.

Common mistakes

• Leaving out Schedule EC. You must complete and enclose it with your return. Otherwise, the credit will be disallowed and your reported tax adjusted.
• Using a PO box. Enter the actual street address of your principal Massachusetts residence.
• Including repair or maintenance costs. These costs are not allowed.
• Including excluded equipment or improvements. The instructions exclude supplemental non-solar or non-wind heating and cooling systems, storage for nonessential functions such as swimming pools, air and water heat pumps, wood-burning stoves or furnaces, structural components, and energy-conservation improvements such as insulation or weatherstripping.
• Claiming more than the residence limit. Subtract energy credits previously taken for that residence from the $1,000 maximum.
• Combining multiple qualifying residences on one schedule. If you moved during the tax year, use a separate Schedule EC for each qualifying principal residence. Combined credits cannot exceed $1,000.
• Overlooking credit expiration. The instructions note that it is more advantageous to use credits that will expire first.

Questions people ask

How much is the credit?

The credit is 15% of net qualifying expenditures, up to $1,000. Net expenditures are qualifying costs minus any related U.S. HUD grant or rebate, but not less than zero. The $1,000 maximum applies throughout the time you live in the same principal residence, so prior credits for that residence reduce the amount available.

What kinds of energy property qualify?

Qualifying property uses or transmits solar energy for heating, cooling, hot water, or electricity, or uses wind energy to generate electricity or mechanical energy for non-business residential purposes. Examples include collectors, rock beds, heat exchangers, windmills, wind-driven generators, and power conditioning and storage devices.

Can I get a refund for credit I cannot use?

No. Excess credit is not refundable. The instructions allow excess credit to be carried over for three succeeding years.

How do joint owners divide the credit?

Joint owners who occupy the property as their principal residence share the available credit in proportion to their ownership interests.

What if I am claiming other tax credits too?

You must reduce the tax reported on Schedule EC, line 9, by the Limited Income Credit, Credit for Taxes Paid to Other Jurisdictions, and other applicable credits. The instructions recommend using credits that expire first.

Official sources

• https://www.mass.gov/lists/dor-tax-forms-and-instructions