Local Option - Sales and Use Tax Exemption for Renewable Energy Systems

February 24, 2023

Summary

Note: See the supplemental Sales & Use Tax Topics: Renewable Energy Components Form for more information.

Colorado enacted S.B. 07-145 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.

Eligible renewable energy property is defined as "any fixture, product, system, device or interacting group of devices that produce electricity from renewable resources, including, but not limited to, photovoltaic systems, solar thermal systems, small wind systems, biomass systems, or geothermal systems."

The incentive is administered at the local level by individual cities and counties. Individuals should contact the city and county where their property is located to find out if a tax rebate or credit will be established in their community.

Websites for many Colorado cities are available on the Colorado Municipal League website, www.cml.org.

Websites for Colorado counties are available on the Colorado Counties, Inc. website, www.ccionline.org.

Program Overview

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

Authorities

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

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

Name:

CRS § 29-2-105

Name:

CRS § 39-26-724

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.