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The incremental value of renewable facilities above nonrenewable facilities is disregarded when being assessed for tax purposes.
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Colorado
Colorado Renewable Energy Property Tax Assessment
According to Colorado Statute §39-4-102(1)(e), the state can consider the additional cost to construct a renewable energy facility to be an investment, thereby making the property value for tax purposes to be equal with the cost per kilowatt of the construction of a comparable nonrenewable energy facility. In other words, the incremental value of the renewable facilities above the nonrenewable facilities is disregarded when being assessed for tax purposes. Eligible technologies include: landfill gas, solar, wind, and others. The Colorado Division of Property Taxation is responsible for determining the nonrenewable comparison value each year and the amount varies depending on the rate set annually by the Division of Property Taxation. For 2006, the base cost threshold was $627 per kilowatt for projects up to 100 megawatts. This valuation methodology applies to renewable generators that are connected to the transmission system. It does not apply to customer-sited resources.
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