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Renewable Energy Property Tax Assessment

Eligibility 
Commercial
Savings Category 
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Wind (Small)
Hydroelectric (Small)
Program Info
Sector Name 
State
Administrator 
Department of Local Affairs
Website 
http://www.colorado.gov/cs/Satellite/DOLA-Main/CBON/1251642258670
State 
Colorado
Program Type 
Property Tax Incentive
Rebate Amount 

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

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.