Falmouth official urges refundable Title V septic tax credit to aid coastal homeowners

Chairman Madero and State Sen. Jamie Eldridge presided over testimony on House Bill 4082, which would change Massachusetts’ Title V septic tax credit from nonrefundable to refundable.

Jonathan Kaufman, representing the Town of Falmouth’s Water Quality Management Committee and the town’s Select Board, told the joint revenue committee that the Massachusetts Department of Environmental Protection in 2023 identified 30 coastal water bodies and associated watersheds on Cape Cod and the Islands as nitrogen‑sensitive, triggering watershed management plans that will require thousands of homeowners to upgrade septic systems or connect to municipal sewer.

Kaufman said the resulting costs for homeowners “will likely range from $30,000 to $60,000 or more” per property. He said Falmouth estimates “more than 10,000 homeowners will be impacted by these new regulations.” He testified that the existing Title V tax credit is nonrefundable and capped at $18,000, which he described as regressive because many lower‑ and middle‑income homeowners “will realize little to no relief” under the current structure.

“House Bill 4082 seeks to change the tax credit from a nonrefundable to a refundable tax credit, thereby enabling all eligible homeowners to realize the benefits of this law,” Kaufman said. He told the committee that a refundable credit would allow eligible homeowners to claim a portion of eligible expenses regardless of how much they owe in state taxes, and that would help “fixed income seniors and young families” bear the cost while supporting restoration of at‑risk coastal waterways.

The committee recorded the testimony; no vote or formal committee action on the bill was taken during the hearing.