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Massachusetts Free Printable  for 2024 Massachusetts Septic Credit

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Septic Credit
Schedule SC

Massachusetts Department of Revenue Schedule SC Septic Credit for Repairing or Replacing a Failed Cesspool or Septic System Name(s) as shown on Massachusetts Forms 1 or 1-NR/PY 2023 Social Security number Street address of principal residence with a failed system (must be in Massachusetts; do not enter PO box) City/Town State Zip Part 1. General information 1a Date certificate of compliance or verification letter issued (mm/dd/yyyy). Retain a copy of certificate or letter Phone number 1b Name of approving authority 2 If you were the sole owner of the property, enter 100%; otherwise enter the percentage of the total actual costs that you paid List names, addresses and pct. of ownership of any co-owners of above property. If a condominium, list legal name of condominium association and total number of owners For tax years 2022 and prior and claiming a carryforward credit, if you received a subsidized loan from the Commonwealth, or a betterment issued by a municipality to complete repairs or replacement of a qualified cesspool or septic system, complete line 3 (you must also complete Part 5). 3a ● Subsidized loan issued under homeowner septic repair program Name of participating lender Amount of loan Loan term (in months) Interest rate (fill in one only) ● 0% ● 3% ● 5% 3b ● Loan issued by municipality and assessed as a betterment (see instructions) to your property tax bill Name of municipality Amount of betterment Number of years to repay betterment Interest rate Part 2. Computation of Septic Credit Complete Part 2 only if Certificate of Compliance or verification letter was issued in 2023. 4 Briefly describe the nature of expenditures made to comply with Title 5 or to connect to a municipal sewer system pursuant to a federal court order, Administrative Consent Order, state court order, consent decree or similar mandate. Complete details must be available upon request. Also include any actual costs incurred in 1995 through 2022. a. Description b. Date paid 5a Total actual costs to repair or replace a failed cesspool or septic system or to connect to a municipal sewer system. Add all amounts in line 4, col. c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a 5b Enter amounts of grants or reimbursements received for amounts shown in line 5a.. . . . . . . . . . . . . . . . . . . . . . . 5b 5c Subtract line 5b from line 5a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c c. Actual cost 2023 SCHEDULE SC, PAGE 2 Name(s) as shown on Massachusetts Forms 1 or 1-NR/PY Part 2. Computation of Septic Credit Social Security number (continued) 6 Maximum amount available for computation of the credit. Enter the smaller of line 5c or $30,000.. . . . . . . . . . . . . 6 7 Amount of actual costs available for the credit. Multiply line 6 by .60 (60%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Part 3. Current year credit 8 Maximum Septic Credit available this year. If Certificate of Compliance or verification letter was issued in 2023, enter the smaller of line 7 or $4,000. If claiming a carryover credit, enter the smaller of 2022 Schedule SC, line 14, col. C or $1,500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Adjusted Septic Credit. Multiply line 8 by the percentage in line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Interest subsidy received, if any (from Part 5, line 36) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Adjusted Septic Credit available for 2023. Subtract line 10 from line 9. Not less than 0. . . . . . . . . . . . . . . . . . . . . 11 12 Total tax from Form 1, line 28 or Form 1-NR/PY, line 32 less Limited Income Credit, and/or Credit for Taxes Paid to Other Jurisdictions, and/or certain other credits, if any. Not less than 0. See instructions . . . . . . . . . . . . . 12 13 Massachusetts Septic Credit allowable this year. Enter the smaller of line 11 or line 12 here and on Schedule CMS. You must enclose Schedule SC with your return. Failure to do so will result in this credit being disallowed on your tax return and an adjustment of your reported tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Part 4. Unused Septic Credit carryover Complete only if line 7 is more than line 13, or if you have unused credits from prior years. 14 For year of issuance of certificate of compliance. c. Unused credit available b. Portion used Subtract col. b from col. a a. this year (2022 Year Total credit available Sch. SC, line 13) Amount For 15 2019 2020 2021 2022 2023 (2022 Sch. SC, line 14, col. c)) (2022 Sch. SC, line 14, col. c)) (2022 Sch. SC, line 14, col. c)) (2022 Sch. SC, line 14, col. c)) (2023 Sch. SC, line 7) _______________ _______________ ______________ _______________ _______________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ Totals _______________ ________________ ________________ 2024 2024-2025 2024–2026 2024–2027 2024–2028 2023 SCHEDULE SC, PAGE 3 Name(s) as shown on Massachusetts Forms 1 or 1-NR/PY Social Security number Part 5. Computation of interest subsidy. If certificate of compliance or verification letter was issued in 2022 or a prior year and claiming a carryforward credit, complete all applicable lines. 16 Total amount of loan or betterment outstanding during 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Number of days the loan or betterment was issued during 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Amount in line 16 × (number of days in line 17 ÷ 365) × 5.75%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Total amount of loan or betterment outstanding during 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 Number of days the loan or betterment was issued during 2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 Amount in line 19 × (number of days in line 20 ÷ 365) × 6.5%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 Total amount of loan or betterment outstanding during 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 23 Number of days the loan or betterment was issued for during 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 Amount in line 22 × (number of days in line 23 ÷ 365) × 5%.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 Total amount of loan or betterment outstanding during 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 26 Number of days the loan or betterment was issued for during 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 27 Amount in line 25 × (number of days in line 26 ÷ 365) × 4%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 28 Total amount of loan or betterment outstanding during 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 29 Number of days the loan or betterment was issued for during 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 30 Amount in line 28 × (number of days in line 29 ÷ 365) × 5.5%.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 31 Total amount of loan or betterment outstanding during 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 32 Number of days the loan or betterment was issued for during 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 33 Amount in line 31 × (number of days in line 32 ÷ 365) × 8.25%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 34 Total interest at market rate. Add lines 18, 21, 24, 27, 30 and 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 35 Total interest actually paid on the loan or betterment. If claiming a carryover credit, enter the total interest paid during all periods listed above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 36 Amount of interest subsidy. Subtract line 35 from line 34. Enter result here and in Part 3, line 10. Not less than 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Schedule SC Instructions What is the Title 5 Septic Credit? Effective for tax years beginning on or after January 1, 2023, the Septic Credit is a credit equal to 60% of the actual costs incurred in the repair or replacement of a failed septic system. The expenses are the lesser of the taxpayer’s actual costs paid to repair and replace the system, or $30,000. The maximum amount of the credit that may be claimed in any tax year is $4,000. If your Certificate of Compliance or verification letter was issued in 2022 or prior, the maximum amount of credit carryover that may be claimed in any tax year is $1,500. Note: If you moved during the taxable year and had more than one principal residence that qualified for the Septic Credit, you must file a separate Schedule SC for each of those principal residences. However, the maximum amount of the combined Schedule SC credits cannot exceed $4,000. Any excess credit amount may be used in the five tax years following the year in which the credit was initially claimed. The total amount of credit that may be claimed by the owner for a residential property is $18,000. Who is Qualified to Claim the Credit? To claim the Septic Credit, you: • Must be the owner of the residential property located in Massachusetts; • Must occupy the property as your principal residence; and • May not be the dependent of another taxpayer. You are the owner of the residential property if you have legal title to the property. Co-owners of the residential property who meet each of the above requirements may claim the credit proportionate to the amount of actual costs paid by each such co-owner, up to the total maximum amount of the credit of $4,000 per year ($1,500 for prior year carryforwards). A principle residence is generally the residence that you live in most of the time. If another taxpayer may claim you as a dependent on his or her 2023 Massachusetts income tax form you are not eligible to claim the credit. What are Actual Costs? Actual costs are the reasonable and necessary costs paid by the owner to repair and replace a failed septic system, including the costs for materials, equipment, demolition, relocation, design, engineering, testing and inspection, reduced by grants and reimbursements received. Expenses incurred by the owner in 1995 through 2022 to repair or replace a failed system are also actual costs. Actual costs do not include costs paid for: • The repair and replacement of any system that is not a failed system; • The repair and replacement of any system not undertaken pursuant to the relevant Department of Environmental Protection (DEP) regulations; or • The replacement of landscaping. A copy of the Certificate of Compliance or verification letter issued to the owner by the appropriate authority stating that the system has been repaired or replaced in compliance with the relevant DEP regulations must be kept with your records. What is an Interest Subsidy? For tax years 2022 and prior only, the Commonwealth, through the efforts of the DEP, and the Massachusetts Housing Finance Agency (MHFA) and the state’s cities and towns, offers qualified owners interest subsidies in the form of low interest rate loans and betterments for the repair and replacement of failed septic systems. If an owner has received an interest subsidy, the amount of the Title 5 credit that the owner may claim is reduced by the amount of the interest subsidy the owner receives. Generally, the amount of the interest subsidy is the difference between the nonsubsidized interest rate determined under MGL ch 62C, § 32(a) in effect at the time the owner receives the subsidy and the amount of interest the owner actually pays. How Do I Claim the Credit? To claim the credit, you must complete and enclose Schedule SC with your return. Failure to do so will result in this credit being disallowed on your tax return and an adjustment of your reported tax. You must retain for your records: • A copy of the Certificate of Compliance or verification letter; • If you have received an interest subsidy from the Commonwealth, a copy of a truth in lending statement or similar document from the lender stating the lender’s name, the amount of the loan, the interest rate imposed, the length of the repayment term, and the amount of the loan that you have repaid; and/or • If the interest subsidy is in the form of a betterment, the relevant property tax bill(s) or other documents received from the taxpayer’s city or town stating the name of the city or town, the amount of the betterment, the interest rate imposed, the length of the repayment term, and the amount of the betterment that you have repaid. For more information on the Septic Credit, see Technical Information Releases 97-12, 98-8, 99-5 and 99-20 and DOR Directive 01-6. What If I Am Taking the Septic Credit and Another Credit On My Tax Return? If you are taking another credit in addition to the Septic Credit on your tax return, you must reduce the amount of tax reported in line 12 of Schedule SC (from Form 1, line 28 or Form 1-NR/PY, line 32) by any Limited Income Credit and/or Credit for Taxes Paid to Other Jurisdiction and any other credits you may be eligible for. These include but are not limited to the Solar and Wind Energy Credit, Lead Paint Credit, Economic Opportunity Area Credit, Economic Development Incentive Program Credit, Brownfields Credit, Low-Income Housing Credit, Historic Rehabilitation Credit, Film Incentive Credit, Medical Device Credit, Farming and Fisheries Credit, Low-Income Housing Donation Credit and Veterans Hire Credit. Note: It is more advantageous to use the credit(s) that is going to expire first.
Extracted from PDF file 2023-massachusetts-schedule-sc.pdf, last modified November 2023

More about the Massachusetts Schedule SC Individual Income Tax Tax Credit TY 2023

This form is for claiming a Septic Credit for Repairing or Replacing a Failed Cesspool or Septic System.

We last updated the Septic Credit in January 2024, so this is the latest version of Schedule SC, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule SC directly from TaxFormFinder. You can print other Massachusetts tax forms here.


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Other Massachusetts Individual Income Tax Forms:

TaxFormFinder has an additional 126 Massachusetts income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 1-ES Instructions Estimated Income Tax Forms & Instructions
Form 1 Resident Income Tax Return
Form 1 Instructions Individual Income Tax Instructions
Form 1-NR/PY Nonresident or Part-Year Resident Income Tax Return
Schedule HC Health Care Information

Download all MA tax forms View all 127 Massachusetts Income Tax Forms


Form Sources:

Massachusetts usually releases forms for the current tax year between January and April. We last updated Massachusetts Schedule SC from the Department of Revenue in January 2024.

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Schedule SC is a Massachusetts Individual Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Massachusetts Schedule SC

We have a total of thirteen past-year versions of Schedule SC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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