Renewable Energy Property Tax Assessment (Colorado)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Colorado

Name Renewable Energy Property Tax Assessment
Incentive Type Property Tax Incentive
Applicable Sector Commercial
Eligible Technologies Solar Thermal Electric, Photovoltaics, Wind, Biomass, Geothermal Electric, Small Hydroelectric
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Varies depending on rate set annually by the Division of Property Taxation







Start Date 2009-01-01


















Program Administrator Department of Local Affairs
Website http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251642258670
Date added to DSIRE 2007-02-16
Last DSIRE Review 2014-07-30



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

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 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.


Incentive Contact

Contact Name Michael Krueger
Department Colorado Department of Local Affairs
Division Division of Property Taxation (Locally-Assessed Property)
Address 1313 Sherman Street, #419

Place Denver, Colorado
Zip/Postal Code 80203
Phone (303) 864-7792


Email michael.krueger@state.co.us

Contact Name Deb Myer
Department Department of Local Affairs
Division Division of Property Taxation (State-Assessed Property)
Address 1313 Sherman Street, #419

Place Denver, Colorado
Zip/Postal Code 80203
Phone (303) 864-7774


Email deb.myer@state.co.us
Website http://www.dola.state.co.us/dpt/index.htm
     

Authorities (Please contact the if there are any file problems.)

Authority 1: CRS 39-4-101 et seq.

Date Enacted 2001, subsequently amended


Authority 2: Colorado Assessors' Reference Library, Volume 5, Personal Property Manual, page 7.53




















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"