Local Option - Property Tax Exemption for Renewable Energy Systems

December 06, 2023

Summary

Colorado enacted SB07-145 in April 2007, authorizing counties and municipalities to offer property or sales tax rebates or credits to residential and commercial property owners who install renewable energy systems on their property.

Local governments can enact incentive payments or property tax rebates under certain circumstances related to economic development. A county, municipality, or special district can enter into negotiations for an incentive payment with owners of new business facilities. A county, municipality, or special district may also negotiate an incentive payment or credit with owners of existing business facilities, located in their jurisdiction, based on verifiable documentation demonstrating that there is a substantial risk that the owner of the existing business facility will relocate it out of state. The incentives cannot exceed 100 percent of the personal property taxes paid to the county, municipality, or special district. For agreements made prior to August 6, 2014, the agreement cannot last more than ten years. For agreements made after August 6, 2014, the agreement may not last longer than thirty-five years, §§ 30-11-123, 31-15-903, and 32-1-1702, C.R.S.

Other local renewable energy incentives may exist. Contact your local county or municipality for more information.

Websites for many Colorado cities can be found at the Colorado Municipal League website, www.cml.org.

Websites for Colorado counties can be found at the Colorado Counties, Inc. website, www.ccionline.org.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Colorado
Incentive Type:	Property Tax Incentive
Web Site:
Administrator:	Department of Local Affairs, Local Governments
Start Date:	8/3/2007
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Photovoltaics Wind (All) Biomass Geothermal Heat Pumps Wind (Small)
Incentive Amount:	Varies (local option)
Maximum Incentive:	Varies (local option)

Authorities

Name:	CRS § 30-11-107.3
Date Enacted:	04/16/2007
Effective Date:	08/03/2007

Name:	CRS § 31-20-101.3
Date Enacted:	04/16/2007
Effective Date:	08/03/2007

Name:

CRS § 32-1-1702

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.