Getting the necessary repairs done on a septic system to pass Title 5 inspections can be expensive. Fortunately for residents of Massachusetts, various financial programs are available to help homeowners pay to repair a failed septic system. These programs make Title 5 repairs a good investment for a homeowner that pays off in the long run.
The following are two different financial incentives offered by both federal and state government agencies that help encourage Massachusetts homeowners to get their non-compliant septic systems repaired so that they meet Title 5 requirements:
The Title 5 Septic System Tax Credit
The State of Massachusetts Department of Revenue offers a tax credit that homeowners can claim on expenses incurred for septic system repairs that allow a previously non-compliant system to pass Title 5 inspection.
There are a variety of requirements that must be met for qualification for the credit. The taxpayer claiming the credit must own the property to which repairs are made. He or she must also occupy the property in questions. The taxpayer cannot be a dependent on anyone else's return and must demonstrate that the septic system that receives the repairs had previously failed to pass Title 5 inspection.
The credit is offered on up to $6,000 of relevant expenses, but only $1,500 may be claimed per year. In order to get the full credit of $6,000, a homeowner must have spent $15,000 on a repair project. The credit amount is calculated by taking 40 percent of the actual amount spent.
Taxpayers cannot claim this credit until filing a return for the year during which the repair project was completed. Forms that must be filled out to claim the credit on a tax return include Schedule SC. This form and a Certificate of Compliance must be attached to the Form 1 or Form 1-NR/PY form of the tax returns of Massachusetts taxpayers claiming the credit.
In addition to the above-mentioned tax credit, financial assistance is also provided by The Massachusetts Housing Finance Agency or the Farmers Home Administration (FHA) of the federal government for those who qualify.
Both of these agencies offer low-cost financing on the costs of repairs, parts replacement, or upgrades for septic systems that have previously failed to pass Title 5 inspection.
Homeowners looking for more information on financial assistance should first do some research at their local Board of Health. A town's Board of Health should be able to provide information on low-cost financing programs available to area residents.
For more information, contact John C Parmenter Inc. or a similar company.