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Lead Paint Removal Credit
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What is the Lead Paint Removal Credit?
The Lead Paint Removal Credit is a state income tax credit for Massachusetts residential property owners who delead their property. To claim the credit, the property must be inspected and found to be contaminated with lead paint. After the lead paint is covered or removed, the property must be re-inspected.
Property owners can get the full tax credit if they get a Letter of Full Compliance, or a partial tax credit if they get a Letter of Interim Control. A Letter of Interim Control is given for emergency deleading work that removes the most dangerous lead paint but does not bring the property fully into compliance.
The maximum tax credit is $1500 per residential unit for full compliance, and $500 per residential unit for interim control. You must claim the credit the year the deleading letter was issued, or the year you paid for the deleading work, whichever is later. If the credit is greater than the amount of income taxes you owe, you can carry over the balance for up to seven tax years.
Am I eligible?
The Lead Paint Removal Credit is for owners of Massachusetts residential property who pay to delead their property. To qualify:
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You must own residential property in Massachusetts. The property can be a single-family home, a unit in a multi-family home or apartment building, a condominium, or other residence.
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A certified inspector or risk assessor must have inspected the property and found dangerous levels of lead paint. Most homes built before 1978 contain lead paint.
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You must have the deleading work done by a licensed deleader or other authorized person.
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You must have a Letter of Full Compliance or Letter of Interim Control issued by a certified lead paint inspector or risk assessor.
What type of work qualifies for the credit?
Full deleading means the covering or removal of all lead paint, plaster, or other contaminated materials that could poison a child under the age of six. Interim control means the covering or removal of the most dangerous lead hazards. Once interim control work is done, you have two years to finish deleading your property if a child under six lives there.
The inspector or risk assessor will let you know what work needs to be done to bring your property into full compliance or for interim control. All work listed by the inspector or risk assessor qualifies for the lead paint removal tax credit.
Deleading work may include the removal or covering of:
- any lead paint, plaster, or putty that is peeling, chipping, or flaking
- any lead paint or putty on moveable window parts
- any lead paint or other lead coating on doors, window sills, woodwork, or other "mouthable" surfaces that a child under six might chew on
What benefits will I get?
The amount of your lead removal tax credit depends on whether you have a Letter of Full Compliance or a Letter of Interim Control, and how much you spent deleading your property.
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If you have fully deleaded your property and have a Letter of Full Compliance, your lead removal tax credit will equal the amount you paid for deleading, up to a maximum of $1500 per residential unit.
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If you have removed the most dangerous lead hazards and have a Letter of Interim Control, your lead removal tax credit will equal half of the amount you paid for interim control, up to a maximum of $500 per residential unit. The $500 applies toward the $1500 limit per residential unit for full deleading.
How do I apply?
You must file a Massachusetts state income tax return to claim the Lead Paint Removal Credit.
To figure out the amount of your credit, you should fill out Schedule LP, Credit for Covering or Removing Lead Paint on Residential Premises. After you have completed Schedule LP, enter the amount of your credit on Form 1, Schedule Z. Do not file Schedule LP with your return.
You must keep a copy of Schedule LP and your Letter of Full Compliance or Letter of Interim Control for your records. Do not file these forms with your return.
The 2008 Schedule LP is available online from the Department of Revenue:
You may also order a copy of Schedule LP by calling the Department of Revenue's 24-hour automated telephone assistance toll-free at 1-800-392-6089.
Useful links
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Residential Property Credits - Lead Paint Removal Credit
Official information about the lead paint removal credit from the Massachusetts Department of Revenue. Includes eligibility, amount of credit, and filing information.
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Deleading
Information about who can do deleading, lead paint laws, inspectors, and deleading financial assistance, from the Massachusetts Office of Health and Human Services.
Lead Paint Removal Credit section last updated on 7/10/09
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