CCIAOR Announces Support for Septic Tax Credits

CCIAOR Throws Support Behind State Representative Vieira’s Proposed

Residential Tax Refund for Septic Upgrades

CCIAOR Sent a Letter of Support to Joint Committee on Revenue

As part of the Cape Cod and Islands Association of REALTORS® (CCIAOR) support for clean water infrastructure, CCIAOR offered a strong letter of support for State Representative David Vieira’s proposal, H.4082 – An Act Relative to a Refundable Title 5 Septic Tax Credit. This proposal amends the existing Title 5 tax credit law from a nonrefundable tax credit to a refundable tax credit, ensuring that every resident on Cape Cod, Martha’s Vineyard, and Nantucket receives the full $18,000 tax credit regardless of the amount of income tax they pay.

The current Title 5 tax credit applies to homeowners who incur expenses for the repair, replacement, or upgrade of a failed cesspool or septic system, or connection to a municipal sewer system, as required by state environmental regulations. This personal income tax credit allows homeowners to receive a total tax credit of $18,000 with a maximum credit claimed in any single tax year of $4,000. These eligible expenses can only be used to reduce the taxes a homeowner owes the Commonwealth of Massachusetts.

Unfortunately, the current regulations pose a problem for homeowners who bear the financial burden for the cost of a sewer connection or septic upgrade but owe little to no income tax to the Commonwealth. Turns out they would not receive the full $18,000 tax credit. H.4082, as proposed, would make sure that lower- and middle-income homeowners receive the full refund available, so they are not left behind by making the tax credit fully refundable.

CCIAOR believes H.4082 is a fair and equitable solution to the problem that will benefit current and future homeowners and will help the Cape and Islands solve its wastewater problem.

“Nitrogen pollution is one of the most serious issues facing our communities, and it is an expensive problem to solve. We are proud to support Representative Vieira’s bill that ensures all homeowners in our region will receive the same financial assistance to offset the cost of critical wastewater management upgrades needed to clean up our waterways,” said CCIAOR CEO Betsy Hanson.

All 22 towns across the Cape and Islands are working to reduce nitrogen pollution. Fourteen Cape Cod towns have been labeled “Nitrogen Sensitive Areas” in 2023 by the Massachusetts Department of Environmental Protection and are required to reduce excess pollution in the region’s estuaries and waterways over the next 20 years.

To read CCIAOR’s letter of support for H.4082, please click here.

###