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  • Ben Kaplan

Senator Moran Secures Relief for Homeowners Through Septic Tax Credit

FOR IMMEDIATE RELEASE: October 4th, 2023


Ben Kaplan, Communications Director Office of Senator Susan L. Moran

Senator Moran Secures Relief for Homeowners Through Septic Tax Credit

Homeowners can now combine Tripled Tax Credit with Low-Interest Loans

(BOSTON) - Senator Susan Moran (D – Falmouth) today announces a significant victory for Massachusetts homeowners facing high costs of septic system repair or replacement. As part of the recently passed tax relief package, An Act to Improve the Commonwealth's Competitiveness, Affordability, and Equity, signed by Governor Maura Healey on Wednesday, the maximum claimable tax credit for Title V Cesspool and Septic System improvements has tripled from $6,000 to $18,000.

The maximum claimable amount per year has also been increased from $1,500 to $4,000, allowing residents to spread the savings over up to six consecutive tax years. Additionally, the new law increases the percentage of total expenses that can be claimed as part of the tax credit from 40% to 60%, further assisting homeowners with less expensive septic improvement costs who are unable to utilize the full $18,000 credit.

Also secured by Moran in the new law is a technical change that ensures that homeowners will be able to take advantage of low- and no- interest septic loan programs while not jeopardizing their ability to claim the credit, potentially saving homeowners an additional $5,000 in interest payments. Currently, many regions, including Cape Cod, offer low- and no-interest loan programs to residents required by state regulation to improve or replace their septic systems. Many of these programs, including Cape Cod’s AquiFund program, are funded through the state’s Clean Water Trust Fund. Previous language required the claimable tax credit to be reduced by the amount of any interest subsidy from the state, which unnecessarily penalized homeowners from utilizing loan programs designed for this exact purpose.

“This new law will save tens of thousands of dollars for homeowners and municipalities struggling to manage the significant financial burdens of compliance with new state regulations,” said Moran. “We know that many homes on Cape Cod will need to replace or upgrade their septic systems in the near future, and this bill increases the financial tools available for homeowners to accomplish these improvements and contribute to the state’s nitrogen pollution abatement efforts. The benefits of these changes will be felt by countless households across Cape Cod. I’m grateful to Governor Healey, Lieutenant Governor Driscoll, Senate President Spilka, and Chairman Rodrigues for listening to the concerns of our communities and ensuring that this tax credit is accessible for all residents.”

As more and more residents are required to upgrade or replace their septic systems, the amount of homeowners who claim this credit will increase, along with the total savings for residents and municipalities across the state.

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