SECTION 1. Chapter 62, Section 6, is hereby amended by adding the following subsection:- “(n) Any owner of residential property located in the commonwealth who is not a dependent of another taxpayer and who occupies said property as his principal residence, shall be allowed a credit equal to 40 per cent of the expenditures for the repair of a private sewer lateral, the installation of an innovative groundwater recharge system, or the inspection or repair of wood pilings used to support the foundation of the property. Said expenditures shall be the actual cost to the taxpayer or $5,000, whichever is less; provided, however, that said credit shall be available to eligible taxpayers beginning in the tax year in which the work was completed; and provided, further, that said credit shall not exceed $1,500 in any tax year and any excess credit may be applied over the following five subsequent tax years up to an aggregate maximum of $6,000. The amount of any such credit shall be reduced by an amount equal to the total grant or subsidy received from any governmental entity, whether directly or indirectly, toward the cost of said expenditures.

The Department of Revenue shall consult with the Department of Environmental Protection in developing rules, regulations and guidelines, including defining eligible projects and costs, for said tax credit.”