Solar Tax Credits For Non-Profit Organization

Massachusetts has always been one of the most progressive states in the country when it comes to encouraging investment in and the use of, alternative energy sources. In particular, it offers a range of tax credits, deductions, and exemptions for homeowners, businesses, and non-profit that use alternative energy sources as their primary source of power. Utilizing these benefits can add to the savings many are already realizing simply from switching to alternative sources of energy. This has attracted many homeowners, business owners, and non-ports to the prospect of utilizing alternative energy sources such as wind or solar power. In particular, there are two solar tax credits for non-profit in Massachusetts. Let’s look at what these are.

Excise Tax Deduction

This one is nice for those non-profit that may be considering installing a solar power system but are wary of the steep initial cost they’d have to make to invest in such a system. In Massachusetts, businesses and non-profits are allowed to deduct from their income, for state taxes at least, the cost of any installation of a wind or solar power system, whether paid or incurred. This includes a “solar or wind powered climatic control unit and any solar or wind powered water heating unit or any other type of unit or system powered thereby.” Also, when calculating the state excise tax for businesses and non-profits, the power system itself would be exempt. There would essentially be no tax on the system itself. These incentives can make a huge difference in alleviating the cost of installation for an expensive solar power system which can be the deciding factor for many as to whether or not they can afford to invest in solar power at this level.

Excise Tax Exemption

This exemption is nice because it helps off-set what would be long-term costs that would otherwise dissuade people from installing a solar power system for their non-profit organization. Basically, what this is a law exempting any “solar or wind powered climatic control unit and any solar or wind powered water heating unit or any other type unit or system powered thereby,” which means that any solar power unit you might install in your non-profit office would be officially exempt from being considered part of an organization’s net worth and therefore, not taxed as such. This is useful because many other states do offer some nice installation incentives, but once the system has been around for a year, those incentives are over and the system is taxed as a normal part of a non-profit’s value. Considering the expense of one of these units, that can add up quickly! This will never be a concern in Massachusetts however.

Massachusetts offers a range of incentives for businesses and non-profits alike to invest in alternative energy sources. This is one of the areas where Massachusetts has remained quite progressive. In particular, Massachusetts offers two nice incentives known as the “Excise tax deduction for solar- or wind-powered systems” and the “Excise tax exemption for solar- or wind-powered systems.” These incentives, coupled with the savings already achieved simply by using solar power to begin with, are strong reasons for any non-profit in Massachusetts to consider investing in solar power. What have you got to lose? Why not take advantage of the generous solar tax credits for non-profits in Massachusetts?

If you are based Massachusetts in and want to know more about tax credits, you can visit the following link:

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