I live in Massachusetts, my septic tank was cracked, The town B.O.H. said that the tank needed to be replaced. Can I take the credit, what is the definition of failed?

[oldakowskim]

The On Demand Turbo Tax Guidance says that if you voluntarily repair or replace a cesspool or septic tank, this credit is not available since it is not considered a "failed" system.

I contacted the Town Board of Health after I was told by the company who drained my septic tank that it had a crack. I was told by the pumper that the water was not up to the distribution piping. I asked the town's Board of Health if I could have the crack repaired. My town's Board of Health said I would need a new septic tank. So, did I voluntarily replace the septic tank or was it considered a "failed" system?

[TomK · Accepted solution]

You may want to have your system formally inspected in order to qualify for this credit.

A system is a "failed system" for purposes of the Title 5 credit when it is documented as a "failed system" after inspection by an approved System Inspector, or is determined to be a failed system by the local approving authority or the Department of Environmental Protection. See 301 CMR 15.303, 15.340.

https://www.mass.gov/technical-information-release/tir-97-12-personal-income-tax-credit-for-failed-c...