Property Tax Exemption for Residential Renewable Energy Equipment


Program Type Property tax exemption
Technologies Photovoltaics (solar panels), Solar Space Heat, Solar Water Heat, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric
Amount 100% percent tax exemption
Required Documentation Receipt of purchase and installation 
Official Web Site http://www.dola.state.co.us/dpt/index.htm
In the state of Colorado, certain renewable-energy equipment is exempt from property tax. The equipment, such as solar panels, is assessed to have no value for the purpose of determining the taxable value of a residence. This is because “household furnishings” are not taxed. Household furnishings includes additions like wall-to-wall carpeting, free-standing equipment, and as of September, 2008 the Colorado Division of Property Taxation announced that renewable-energy equipment will, too, fall under this heading.
 
This benefits homeowners in that their renewable energy system will raise the commercial value of their home without actually increasing what they pay in property tax.

In order to be eligible for this exemption, the system must be located on residential property, be owned by the owner of the property, and produce energy which is used on-site by the property owner. The energy produced by the system also must not be used to make a profit of any sort if it is to be considered household furnishing, which is to say that you cannot be reimbursed for excess energy produced.