Financial Assistance Information

Financial Assistance Opportunities for System Owners

The following are programs to assist system owners with wastewater management problems:

Mass Housing Finance Agency (MHFA)

MHFA offers low-cost financing to those who qualify. For more information contact Massachusetts Housing Finance Agency (MHFA) (617) 723-0500 or go to their web site: www.masshousing.com

Through a partnership with the Massachusetts Departments of Environmental Protection and Revenue, MassHousing offers an affordable and flexible loan to help you repair or replace your septic system. Loans are designed to meet just about every household budget. The lower your income, the lower the rate you pay; some borrowers may even be eligible for a 0% interest rate.

Interest rates on MassHousing Septic System Repair Loans vary depending upon the borrower's income. For Income Limits and List of Lenders, visit their website.

Other Restrictions

  • Single-family to 4-family homes and condominiums are eligible.
  • The minimum loan amount is $1,000, and the maximum loan amount is $25,000.
  • Loans can be repaid in as little as 3 years, or over a longer period, up to 20 years

Contact Information
To learn more about or apply for a septic system repair loan, contact a lender from the list found on their website. If you would like to speak with someone at MassHousing, call their consumer line at 888.843.6432.


Federal Farmers Home Administration (FHA)

FHA offers low-cost financing to those who qualify. For more information contact FHA:

  • Multi-family home: 202-708-2495
  • Single-family home: 202-708-3175

Tax Credit

Any owner of a Massachusetts residential property who occupies the property as his or her principal residence is allowed a tax credit for the expenses incurred in the repair or replacement of a failed cesspool or septic system. This credit is effective for any tax year beginning on or after January 1, 1997. Contact the Dept. of Revenue, or your tax preparer for additional information. Costs incurred in 1995 and subsequent years can be included.

The maximum amount of the credit that may be claimed in any tax year is $1500. The maximum aggregate amount of the credit that may be claimed is $6000. For more information on the specific qualification criteria, you should contact the Department of Revenue at 617 887-MDOR or visit their website.

Qualified expenses incurred to bring a failed system into full compliance may include one or more of the following:

  • An upgraded system;
  • An alternative system;
  • A shared system; or
  • A connector to a sewer system.

In order to qualify for the credit:

  1. The amount of credit cannot exceed $6,000. The computation of the credit is 40 percent (.40) of available actual costs, not to exceed $15,000 ($15,000 x .40 = $6,000);
  2. The maximum amount of the computed credit claimed in any tax year cannot exceed $1,500;
  3. In the computation of the credit, any interest subsidy received from the Commonwealth must be subtracted;
  4. The credit may be claimed beginning in the tax year in which the repair or replacement work is completed; and
  5. The owner completes Massachusetts Schedule SC and retains it for his or her records along with the Certificate of Compliance.

If the credit exceeds the tax due, the excess credit may be carried forward for up to five succeeding tax years. (This change took effect for tax years beginning on or after January 1, 1997).

If a taxpayer voluntarily repairs or replaces a cesspool or septic tank, this credit is not available since it is not considered a "failed" system under Title V.

Nonresidents do not qualify for this credit since the property must be an owner occupied principal residence located in Massachusetts. However, former Massachusetts residents who are required to file Massachusetts nonresident returns may claim their unused prior year credit carryovers.

Part-year residents qualify for the full credit if the property is an owner-occupied principal residence.

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