The Massachusetts Lead Paint Removal Tax Credit
Property owners who receive a Letter of Full Compliance are eligible for a State Tax Credit equal to the cost of the deleading expenses, or $1,500, whichever is less.
- Property owners who receive a Letter of Interim Control are eligible for a State Tax Credit of up to $500. This $500 amount applies toward the $1,500 limit.
- Only "residential premises" qualify for the Lead Paint Tax credit, including single-family homes, individual units in an apartment building, condominium units, or individual units in multi-family homes.
You are entitled to claim a Lead Paint Tax Credit in the taxable year
in which compliance is certified or in the year in which the payment
for the deleading occurs, whichever is later. Taxpayers must attach a copy of the Letter of Interim Control and/or Letter of Full Compliance to schedule LP of the Massachusetts State Tax forms.
If you owe less than $1,500, or the amount of your credit, in the tax year that you are filing for the Lead Paint Tax Credit, you may carry forward any unused portion of your credit for up to 7 years.
Contact the Massachusetts Department of Revenue at 617-887-MDOR or 800-392-6089, or www.mass.gov/dor to obtain a copy of Schedule LP and additional information regarding the Lead Paint Tax credit.
Get the Lead Out
This program provides low cost financing to owners of 1-4 family properties to remove lead paint and reduce the possibilities of lead poisoning among children.
Owner-occupants who meet the income guidelines are eligible for a 0% deferred payment loan not due until the sale, transfer or refinancing of the property.
Non-profit organizations are eligible for 0% fully amortizing loans on properties that are being rented to income eligible households.
Investor owners are eligible for 3% fully amortizing loans on properties that are being rented to income eligible households.
The maximum loan amounts are:
- Single-family $20,000
- 2-family $25,000
- 3-family $30,000
- 4-family $35,000
For non-profits and investor owners, loan terms run from 5-20 years, based on the size of the loan and borrower qualifications.
Contact the Massachusetts Housing Finance Agency at 617-854-1000 or www.masshousing.com (click on Home Ownership) to locate a housing rehabilitation agency in your area who can assist you in applying for financing and in locating authorized personnel to handle the inspection and abatement process.
The Home Improvement Loan Program (HILP)
- This program offers low interest loans to delead owner-occupied 1-4 family homes and residential condominiums that have been the borrower's principal residence for a minimum of one year.
- Loans range from a minimum of $5,000 to a maximum of $25,000 per home.
- Loan terms range from 5 to 15 years.
- This program can complement the "Get the Lead Out" program by funding work that exceeds the "Get The Lead Out" loan maximum.
- Income limits vary among areas.
- MassHousing will not reimburse borrowers or contractors for work started before the loan closing.
- Contact the Massachusetts Housing Finance Agency at 617-854-1000 or www.masshousing.com (click on Home Ownership) for a HILP agent near you.
HUD 203(K) Program
- This program helps current homeowners and investor-owners refinance their mortgage to pay for deleading costs.
- Prospective buyers can finance deleading costs through a single loan that includes their new mortgage.
- Only 1-4 family homes are eligible.
- A minimum of $5,000 in repairs must be performed.
- This program is capable of financing major deleading jobs because the loan amount is based upon the after-rehab value.
- 203(K) also provides an opportunity to renovate a home and perform other major and minor repairs.
- Call the U.S. Department of Housing and Urban Development (HUD) at 617-994-8200 for a list of participating lenders.
Local Public Programs
- Financing for deleading may be available at your local office of Community Development, Planning or Rehabilitation. These offices are normally located at the City/Town Hall.
- Programs they may offer include:
- Community Development Block Grant Program
- HOME Investment Partnership Program
- The Get The Lead Out Program
- The Home Improvement Loan Program (some agents serve more than one community)
Programs Offered by Local Lenders
- Deleading Assistance Programs
- Home Equity Loans
- Home Improvement Loans
- Mortgage Refinancing
- Purchase and Rehab Mortgages
This information is provided by the Childhood Lead Poisoning Prevention Program within the Department of Public Health.