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Renewable Energy Property Tax Assessment

Eligibility 
Commercial
Savings Category 
Photovoltaics
Program Info
Start Date 

1/1/2009

State 
Colorado
Program Type 
Property Tax Incentive
Rebate Amount 

Varies depending on rate set annually by the Division of Property Taxation

Provider 
Department of Local Affairs

'''Locally Assessed Renewable Energy Property'''

Photovoltaic (PV) and wind energy facilities with a capacity of 2 megawatts (MW) AC or less are assessed locally for property taxes. Additionally, low impact hydro, geothermal, and biomass facilities with a capacity of 2 MW or less and which were placed in service prior to January 1, 2010 are also assessed locally for property taxes. In assigning value to renewable energy property, local assessors are required to use the cost approach outlined in the Assessors' Reference Library. Assessors must also examine the sales comparison and income approaches, both described in the Assessor's Reference Library.

'''State Assessed Renewable Energy Property'''

Renewable energy systems with a capacity greater than 2 MW are assessed for property taxes by the State Assessed Properties Section of the Division of Property Taxation. Additionally, small or low impact hydro, geothermal, and biomass facilities of any size which were placed in service on or after January 1, 2010, are assessed by the state for property taxes. These facilities are valued as though its actual value for property taxation is that of a non-renewable energy facility, including all direct and indirect costs. The incremental value of the renewable energy facilities above the non-renewable facilities is disregarded. The Division of Property Taxation is responsible for determining the nonrenewable comparison value each year. For 2014, the nonrenewable facility value was determined to be $1,089 per kilowatt (KW) for renewable energy projects up to 2 megawatts (MW), and $388 per kW for systems over 100 MW, with other values for various size ranges. Click [http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251590826400 here] for a complete breakdown. This valuation methodology applies to renewable energy that is connected to the grid through an interconnection meter. It does not apply to off-grid customer-sited resources.