Schedule LP: Credit for Removing or Covering Lead Paint on Residential Premises (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule LP calculates the 2024 credit for qualified lead paint removal, covering, and interim control measures on residential premises. It reports the credit available and allowable for the year, along with unused credits carried forward.
Who files this form
Complete and enclose Schedule LP with your Massachusetts return if you are claiming the Lead Paint Credit.
The credit may only be claimed by the owner of residential premises in Massachusetts. Qualifying properties include single-family homes, individual apartment units, condominium units, and individual units in multi-family homes.
Only costs for legally required deleading qualify. The work must remove or cover materials established as containing dangerously high levels of lead, or provide qualifying interim controls under an emergency lead management plan.
What you'll need
Have these documents and details available:
- Your Massachusetts Form 1, Form 1-NR/PY, or Form 2, including the name(s) and Social Security number(s) shown on the return.
- The address of each Massachusetts unit, including its unit or apartment number, if applicable.
- The risk assessor's or final deleading inspector's license number.
- The date of compliance or payment, whichever is later, and the total qualifying costs.
- Letters of Interim Control for Part 1 and Letters of Compliance for Part 2. Attach the applicable letters and retain copies.
- Your 2023 Schedule LP if you have unused credits to carry forward.
- Interim control credit entries from 2017 through 2023, if applicable, to calculate the reduction in your full compliance credit.
How to file
- Complete Part 1 for interim controls and attach the Letters of Interim Control. For each unit, enter 50% of qualifying costs, limited to $1,000.
- Complete Part 2 for full compliance deleading and attach the Letters of Compliance. For each unit, use qualifying costs or $3,000, whichever is less, then subtract the applicable interim control credit entries specified on the form.
- Complete Part 3 to calculate the credit available and allowable for 2024. Include unused credits from 2023 Schedule LP, line 11, column c. Reduce the tax on line 8 by other applicable credits, as instructed, and do not enter less than zero.
- Enter the smaller of lines 7 and 8 on line 9 and on Schedule CMS.
- Complete Part 4 if line 7 is greater than line 8 or you have unused credits from prior years.
- Enclose Schedule LP with your Massachusetts return.
If your credit originated from a pass-through entity, such as a partnership, skip Parts 1 and 2 and begin at Part 3, line 5.
Common mistakes
- Leaving Schedule LP out of your return. The text warns that this will result in the credit being disallowed and your reported tax being adjusted.
- Not keeping the certification letters. You must retain copies of your Letter of Interim Control and/or Letter of Compliance.
- Overlooking which credits expire first. The text notes that it is more advantageous to use the credits that will expire first.
Questions people ask
How much is the credit?
For each residence, the full compliance credit is qualifying deleading costs or $3,000, whichever is less. The interim control credit is 50% of qualifying costs, up to $1,000 per residence. The interim control amount counts toward the $3,000 limit.
Which tax year can I claim the credit in?
Claim the credit in the taxable year when compliance is certified or when payment for deleading occurs, whichever is later.
What inspections are required?
A licensed inspector or risk assessor must establish that dangerous levels of lead are present. A licensed deleader or authorized person must perform the deleading or interim controls. The property must then be reinspected by a licensed risk assessor who issues a Letter of Interim Control or a licensed inspector who issues a Letter of Compliance.
What if my credit is larger than my tax liability?
The unused balance may be carried into the next tax year. An unused portion of the original credit may be carried over for up to seven years.
What if the credit comes from a partnership or another pass-through entity?
Skip Parts 1 and 2 of Schedule LP and start at Part 3, line 5.