Code of Massachusetts Regulations › 830 CMR - DEPARTMENT OF REVENUE › Title 830 CMR 62.00 - Income tax › Section 62.6.3 - Lead Paint Removal Credit

Current through Register 1525, July 5, 2024
(1)
Introduction
. 830 CMR 62.6.3 explains the lead paint
			 removal credit ("deleading credit") allowed against income tax imposed pursuant
			 to M.G.L. c. 62.
See
M.G.L. c. 62, § 6(e), as amended by
			 St. 1993, c. 482. 830 CMR 62.6.3 applies to taxable years beginning on or after
			 January 1, 1994. 830 CMR 62.6.3 must be read in conjunction with any pertinent
			 regulations of the Department of Public Health and the Department of Workforce
			 Development.
In general, the owner of a residential premises who pays for
				the deleading of the premises for the purpose of bringing the premises into
				full compliance with M.G.L. c. 111, §§ 189A through 199B, may claim a
				deleading credit equal to the lesser of the cost of deleading, or $1500, per
				dwelling unit. M.G.L. c. 62, § 6(e). The owner of a residential premises
				who pays for the deleading of the premises for the purpose of bringing the
				premises into interim control pending full compliance pursuant to M.G.L. c.
				111, § 197(b), may claim a deleading credit equal to the lesser of
				½; the cost of deleading, or $500, per dwelling unit.
Id
.
For purposes of claiming the deleading credit, the owner of the
				residential premises may choose full compliance directly, or to undertake full
				compliance as soon as feasible after the institution of interim control and the
				receipt of a letter of interim control.
(2)
Definitions
.
Accessible
, means readily accessible
				to children under six years of age. Any surface is accessible for purposes of
				830 CMR 62.6.3 if it must be deleaded to bring the residential premises into
				compliance with M.G.L. c. 111, §§ 189A through 199B.
Authorized Person
, means a person who
				may legally perform a deleading activity for which he or she has received the
				required training or course of instruction and, as necessary, an authorization,
				certificate, or license, all in accordance with the requirements of the
				regulations of the Department of Public Health
				105 CMR 460.000,
				454 CMR 22.00 and the
				training materials approved by the lead poisoning control Director. See
				105
				CMR 460.110(C). An
				authorized person may be a licensed deleader, a licensed lead-safe renovator,
				an owner, or an owner's agent. To become an authorized person, an owner or
				owner's agent must complete a course of instruction designed by the Childhood
				Lead Poisoning Prevention Program of the Department of Public Health before
				conducting moderate-risk abatement activities. This includes taking a one-day
				class, taking and passing a written examination and receiving an authorization
				number from the Department of Public Health. Before performing low-risk
				abatement and/or containment activities, the owner or owner's agent must review
				a training booklet and take an at-home test which must be returned to the
				Massachusetts Childhood Lead Poisoning Prevention Program (CLPPP), and receive
				an authorization number from CLPPP.
Compliance
, means that the premises
				have been deleaded and that a letter of compliance has been issued by a
				licensed inspector certifying that the deleading of the premises complies with
				the full compliance provisions of M.G.L. c. 111, §§ 189A through
				199B. Interim control means that the premises have been deleaded using interim
				control measures pending full compliance and that a letter of interim control
				has been issued by a licensed risk assessor stating that the deleading of the
				premises complies with the provisions of M.G.L. c. 111, § 197(b).
Cost
, means the costs of deleading
				materials and activities performed by authorized persons, necessary to bring
				the premises into full compliance with M.G.L. c. 111, §§ 189A through
				199B, which are paid for by the owner of the residential premises and for which
				the owner receives no reimbursement. In terms of interim control, only those
				interim control expenses necessary to achieving full compliance are a "cost"
				for the purposes of claiming the deleading credit. "Cost" includes licensed
				inspector's fees. If a loan or credit is used to pay for deleading, "cost" does
				not include finance charges or similar fees, or the amount of any deferral or
				forgiveness.
Dangerous Level of Lead
, the level of
				lead in accessible structural materials which endangers human health as defined
				at
				105 CMR
				460.020.
Deleading
, means the containment or
				abatement of a dangerous level of lead in accessible structural materials,
				including the replacement of window units, undertaken to achieve full
				compliance with the provisions of M.G.L. c. 111, §§ 189A through
				199B. Abatement requires the removal and replacement of paint, plaster or other
				accessible structural materials containing dangerous levels of lead.
				Containment includes the encapsulation, covering or enclosing by any authorized
				means of all paint, plaster or other accessible structural materials containing
				dangerous levels of lead.
Dwelling Unit
, a dwelling unit as
				defined in 105 CMR 410.00 that was constructed prior to 1978 and that is
				located in Massachusetts.
Letter of Compliance
, a letter of
				compliance is a statement issued by a licensed inspector that the deleaded
				premises meets the full compliance provisions of M.G.L. c. 111, § 189A
				through 199B.
Letter of Interim Control
, a letter of
				interim control is a statement issued by a licensed risk assessor that the
				premises meets the interim control provisions of M.G.L. c. 111, § 197(b).
				The Letter of Interim Control shall state a date of expiration that shall be
				one year from the date of issue.
Licensed Deleader
, a licensed deleader
				is any individual, corporation or entity licensed by the Department of Labor
				and Workforce Development pursuant to M.G.L. c. 111, § 197B(b) to perform
				deleading activities. Only licensed deleaders may perform certain high-risk
				deleading activities not listed in
				105 CMR
				460.175(A) or (B). Licensed
				deleaders must be trained and licensed pursuant to
				454 CMR 22.00.
Licensed Lead Inspector
, a licensed
				lead inspector is an individual licensed by the Department of Public Health
				pursuant to M.G.L. c. 111, § 197B(a), to inspect and assess premises for
				the presence of a dangerous level of lead in accessible structural
				materials.
Licensed Lead-safe Renovator
, a
				licensed lead-safe renovator is a contractor who must complete training
				required by the Department of Labor and Workforce Development, pass an exam,
				and become licensed, in order to perform moderate risk deleading work.
Licensed Risk Assessor
, a licensed
				risk assessor is a licensed lead inspector who is also specifically licensed by
				the Department of Public Health to identify and assess urgent lead violations
				and hazards for the purpose of interim control.
Low-risk Abatement and/or Containment
, low-risk abatement and/or containment means the work allowed by
				105 CMR
				460.175(A)  which can be
				performed by authorized persons, provided such activities are performed in
				compliance with the requirements of
				105 CMR 460.000, and in the
				case of deleaders and lead-safe renovators, the additional requirements of
				454 CMR 22.00.
Moderate-risk Abatement
, moderate-risk
				abatement means the work allowed by
				105 CMR
				460.175(B)  to be performed
				by authorized persons, as long as such activities are performed in compliance
				with the requirements of
				105 CMR 460.000, and, in
				the case of lead-safe renovators and deleaders, the additional requirements of
				454 CMR 22.00.
Owner
, the owner of a residential
				premises is any person subject to the provisions of M.G.L. c. 62, who, alone or
				jointly or severally with others: has legal title to a residential premises; or
				has charge or control of a residential premises; or is an estate or trust of
				which a residential premises is a part, or is the grantor or beneficiary of
				such an estate or trust; or is the association of unit owners of a condominium
				or cooperative (which is an owner solely with respect to the common areas and
				exterior surfaces and fixtures of the condominium or cooperative). "Owner" does
				not include a secured lender except to the extent provided in M.G.L. c. 111,
				§ 197D.
Owner's Agent for Low-risk Abatement or
				Containment
, an owner's agent for low-risk abatement or
				containment is an owner's compensated employee or contractor, or other
				uncompensated person, 18 years of age or older who performs work at the
				direction of the owner.
Owner's Agent for Moderate-risk Abatement or
				Containment
, an owner's agent for moderaterisk abatement or
				containment is an owner's compensated employee, or other uncompensated person,
				18 years of age or older who performs work at the direction of the owner, but
				does not include a contractor.
Premises
, means residential premises,
				including any residential dwelling unit and residential property constructed
				prior to 1978.
(3)
Full Compliance Deleading
. To qualify as full
			 compliance deleading for purposes of claiming the deleading credit, the
			 following requirements must be met:
(a) a
			 dangerous level of lead in the accessible structural materials of the
			 residential premises is established by a licensed inspector; and
(b) following deleading by an authorized
			 person, the owner obtains a letter of compliance from a licensed inspector;
			 and
(c) the owner files a copy of
			 the letter of compliance with the Department of Revenue by attaching it to
			 Schedule LP with the owner's income tax return.
These procedures must be followed even if the owner has already
				obtained a letter of interim control and has received or claimed a deleading
				credit for interim control. If the owner is claiming a deleading credit based
				on interim control and full compliance, both the letter of interim control and
				the letter of full compliance must be attached to the owner's income tax
				return.