June 15, 1983

General Laws Chapter 62, Section 6(d) allows certain taxpayers who own residential property in Massachusetts and occupy it as their principal residence a credit equal to 35 per cent of their net expenditure for renewable energy source property or $1,000, whichever is less. The credit will expire on December 31, 1983. You inquire whether a taxpayer who has made renewable energy source expenditures before December 31, 1983 may carry over unused portions of the credit into taxable years ending after December 31, 1983.

Chapter 62, Section 6(d) provides in part:

"Any taxpayer entitled to [the residential energy] credit for any taxable [year], the amount of which exceeds his total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to his tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year."

(See also Subsection (11) of Income Tax Regulation 830 CMR 62.50 ("Residential Energy Credit"), a copy of which is enclosed.)

Based on the foregoing, it is ruled that where the amount of a residential energy credit exceeds a taxpayer's tax liability, the balance may be carried over into taxable years ending after December 31, 1983, if the requirements for carrying over the credit are otherwise met.

Very truly yours,

/s/Ira A. Jackson

Ira A. Jackson

Commissioner of Revenue

IAJ:JXD:mf

LR 83-52