Cape and Islands realtor association supports legislation to change septic tax credits

State Representative David Vieira

WEST YARMOUTH – The Cape Cod and Islands Association of Realtors is supporting State Representative David Vieira’s proposal on refundable septic tax credits.

The proposal amends the existing Title 5 tax credit law from a nonrefundable to a refundable credit, ensuring that every resident on Cape Cod, Martha’s Vineyard and Nantucket receives the full $18,000 tax credit regardless of the income tax they pay.

According to the Realtors Association, 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.

CCIAOR says 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.

“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,” read a statement.

The Realtor Association CEO Betsy Hanson said, “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.”