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Property Tax Exemption for Residential Renewable Energy Equipment

Eligibility 
Residential
Savings Category 
Photovoltaics
Solar Water Heat
Program Info
State 
Colorado
Program Type 
Property Tax Incentive
Rebate Amount 

100% exemption for renewable energy system property

Most locally assessed renewable energy property meet the criteria to be classified as personal property under § 39-1-102 (11), C.R.S.

For Colorado property taxation purposes, solar energy facilities property used to produce two (2) megawatts or less of AC electricity and wind energy facilities property used to produce two (2) megawatts or less of AC electricity are locally assessed. In addition, locally assessed renewable energy property includes small or low impact hydroelectric facilities, geothermal energy facilities, and biomass energy facilities as defined in § 39-4-101, C.R.S., used to produce two (2) megawatts or less of AC electricity and placed into use prior to January 1, 2010.

Renewable energy property in Colorado is taxable unless specifically exempt by the Colorado Constitution.

Renewable energy personal property that is located on a residential classified property, owned by the residential property owner, and produces energy that is used by the residential property is exempt from Colorado property taxation.

Independently owned residential solar electric generation facilities that meet the criteria listed in § 39-1-102 (6.8), C.R.S. are exempt from Colorado property taxation under § 39-3-102, C.R.S. To qualify for the exemption the solar electric generation facility must be located on residential real property, used to produce electricity from solar energy primarily for use in the residential improvements, and have a production capacity of no more than one hundred (100) kilowatts of AC electricity

Other Information 

Energy produced by the system must be used on-site