Sales and Use Tax Exemption for Renewable Energy Equipment (Colorado)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Colorado

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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100%







Start Date 2009-07-01
Expiration Date 2017-07-01


















Website http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251773934969&ssbinary=true
Date added to DSIRE 2009-05-27
Last DSIRE Review 2014-06-26



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


Summary

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.


Incentive Contact

Contact Name Taxpayer Service Division
Department Colorado Department of Revenue

Address 1375 Sherman St.

Place Denver, Colorado
Zip/Postal Code 80261
Phone (303) 238-7378



Website http://www.colorado.gov/cs/Satellite/Revenue/REVX/1176842266433
     
     

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
Date Effective 2014-05-17
Date Enacted 2014-05-17
Expiration Date 2019-07-01
















  • 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"