Sales and Use Tax Exemption for Renewable Energy Equipment (Colorado)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales and Use Tax Exemption for Renewable Energy Equipment|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Local Government, State Government, Agricultural, Institutional, Retail Supplier|
|Eligible Technologies||Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Anaerobic Digestion|
|Energy Category||Renewable Energy Incentive Programs|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Colorado exempts from the state's sales and use tax all sales, storage, and use of components used in the production of alternating current electricity from a renewable energy source. Effective July 1, 2009, through July 1, 2017, all sales, storage, and use of components used in solar thermal systems are exempt from the state's sales and use tax. The exemption for systems which produce electricity from a renewable resource includes but is not limited to photovoltaic (PV) systems, solar thermal-electric systems, small wind systems, biomass systems, or geothermal systems. Effective May 5, 2014, through July 1, 2019, all sales, storage, and use of components used in biogas production systems are exempt from the state's sales and use tax (H.B. 1159).
The statute defines the components of a system eligible for the exemption; these include trackers, generating equipment, supporting structures or racks, inverters, towers and foundations, balance of system components such as wiring, control systems, switchgears, and generator step-up transformers.
The exemption only applies to state sales and use taxes – not to sales and use taxes assessed by incorporated towns, cities, and counties. However, Colorado has granted local jurisdictions the authority to exempt renewable energy equipment from sales and use taxes if a local government chooses to do so.
|Contact Name||Taxpayer Service Division|
|Department||Colorado Department of Revenue|
|Address||1375 Sherman St.|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||C.R.S. 39-26-724|
|Authority 2:||C.R.S. 29-2-105|
|Authority 3:||H.B. 1159|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.