Section 45 Title V Septic Tax Credit Clarification

Section 6 of said chapter 62, as most recently amended by sections 12 to 16, inclusive, of chapter 50 of the acts of 2023, is hereby amended by striking out subsection (i) and inserting in place thereof the following subsection:-
(i) Any owner of residential property located in the commonwealth who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to 60 per cent of the expenditures for design and construction expenses for the repair, replacement, or upgrade of a cesspool or septic system or connection to a sanitary sewer collection system, if such repair, replacement, upgrade or sewer connection is required pursuant to the provisions of Title 5 of the State Environmental Code, the provisions of a watershed permit issued by the department of environmental protection, or other requirements or conditions for implementation of the watershed permit imposed by the permittee or the department of environmental protection. Said expenditures shall be the actual cost to the taxpayer or $30,000, whichever is less; provided, however, that said credit shall be available to eligible taxpayers beginning in the tax year in which the repair, replacement, upgrade or sewer connection was completed; and provided, further, that said credit shall not exceed $4,000in any tax year and any excess credit may be applied over the following five subsequent tax years up to an aggregate maximum of $18,000. The department shall promulgate such rules and regulations as are necessary to administer the credit afforded by this subsection, including, but not limited to, a notification system by the commonwealth to recipients of said interest subsidy or grant of the amount of the total subsidy provided by the commonwealth.

This section clarifies that upgrades to septic systems or connections to sewer required by DEP's Title 5/Watershed Permitting regulations, 310 CMR 15.00, are eligible for the Title V septic tax credit.