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Combined Heat and Power Partnership

Renewable Energy Property Tax Assessment

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
Incentive Administrator/Contact OfficeColorado Division of Property Taxation
Incentive Initiation Date1/1/2009
Incentive Size and Funding SourceIn Colorado, property tax for utility-scale electric-generating facilities is based on installed cost. Renewable energy facilities installed are assessed property taxes as though their installed costs were comparable to those of non-renewable energy facilities. The incremental value of the renewable facilities above the non-renewable facilities is disregarded. The Colorado Division of Property Taxation is responsible for determining the nonrenewable comparison value each year.
Eligible RecipientCommercial property owners.
Eligible FuelBiogas; Woody Biomass; Other
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaThe facility also must be designed to supply electricity for off-site consumption and must have begun energy production after January 1, 2010.
Other Incentive DetailsRenewable 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. 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. Systems of 2 MW or less and which were placed in service prior to January 1, 2010, are assessed locally for property taxes. For 2011 and 2012, the nonrenewable facility value was determined to be $1,008 per kW for renewable energy projects up to 2 MW, and $386 per kW for systems over 100 MW.
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