Schedule LP: Credit for Removing or Covering Lead Paint on Residential Premises (2025)

Who files this form

Complete Schedule LP if you are claiming the Massachusetts Lead Paint Credit. Only the owner of residential premises may claim the credit.

Qualifying properties in Massachusetts include single-family homes, individual apartment units, condominium units, and individual units in multi-family homes. Only costs for legally required deleading qualify.

The unit must be inspected by a licensed inspector or risk assessor, the work must be performed by a licensed deleader or authorized person, and a reinspection must result in a Letter of Compliance or Letter of Interim Control.

What you'll need

Have these documents and details available:

• Your Massachusetts Form 1, Form 1-NR/PY, or Form 2, including the names and Social Security numbers shown on it.
• Letter(s) of Interim Control for Part 1 or Letter(s) of Compliance for Part 2. Attach the applicable letters and retain copies.
• Each property's address, including the unit or apartment number, if applicable.
• The risk assessor's or final deleading inspector's license number.
• Compliance and payment dates, and the total qualified costs.
• Your 2024 Schedule LP if you have unused credits to carry forward.
• Interim control credit amounts from Part 1 of your 2018 through 2024 Schedules LP, if applicable, for the full compliance calculation.

How to file

Complete Schedule LP and enclose it with your Massachusetts tax return.

1. Part 1, interim control: Enter the property and risk assessor details, the later of the compliance or payment date, and qualified costs. Calculate 50% of those costs, limited to $1,000 per residence. Attach the Letter(s) of Interim Control.
2. Part 2, full compliance: Enter the property and inspector details, the later of the compliance or payment date, and qualified costs. Use the lesser of qualified costs or $3,000, then subtract the applicable interim control credits specified on the form. Attach the Letter(s) of Compliance.
3. Part 3, current-year credit: Combine the current-year credits and unused prior-year credits. Calculate line 8 after the required reductions for other credits, but not below zero. Enter the smaller of lines 7 and 8 on line 9 and on Schedule CMS.
4. Part 4, carryover: Complete this part if line 7 is greater than line 8 or you have unused credits from prior years.

If the 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 form warns that this will cause the credit to be disallowed and your reported tax to be adjusted.
• Not retaining the required letters: Keep a copy of the Letter of Interim Control and/or Letter of Compliance, in addition to attaching the applicable letters.
• 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?

For full compliance, the credit is the cost of qualified deleading expenses or $3,000 per residence, whichever is less. The interim control credit is 50% of qualified costs, up to $1,000 per residence. That interim control amount counts toward the $3,000 limit.

Which tax year can I claim the credit in?

Claim it in the taxable year when compliance is certified or the year when payment for deleading occurs, whichever is later.

What work qualifies?

The credit covers legally required work that actually removes or covers lead-contaminated paint, plaster, or other materials that could be readily accessible to children under age six. Interim controls address urgent lead hazards under an emergency lead management plan while awaiting a Letter of Compliance.

What if my credit is larger than my income tax liability?

The unused balance may be carried into the next tax year. You may carry over an unused portion of the original credit for up to seven years.

Official sources

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