| Incentive Type: | Sales Tax Exemption | ||
| Eligible Renewable/Other Technologies: | Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Other Renewables (not specified) | ||
| Applicable Sectors: | Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Local Government, State Government, Agricultural, Institutional, Retail Supplier | ||
| Amount: | 100% | ||
| Authority 1: | HB 1126 | ||
| Date Enacted: | 5/15/2009 | ||
| Date Effective: | 7/1/2009 | ||
| Expiration Date: | 7/1/2017 | ||
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| Summary: Colorado exempts from their 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 also 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 systems, solar thermal electric systems, small wind systems, biomass systems, or geothermal systems. The legislation defines the components of a system which are eligible for the exemption and includes items including, but not limited to 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. Sales and use taxes assessed by incorporated towns, cities and counties are still applied to renewable energy, however, the state has granted local jurisdictions the authority to adopt the exemption for renewable energy equipment if they choose. |
