Colorado Residents Can Take Advantage of Several Solar Tax Incentives
Green upgrades and technologies are being heavily incentivized throughout the United States, and solar is high on the list. Solar incentives and rebates vary by state, but here in Colorado, homeowners have a number of solar tax advantages they can make use of.
At Elite Roofing & Solar, we’re strong believers in solar energy for greater sustainability, freedom from the power grid, and of course the potential for saving money. While installing a solar array on your home is a significant investment, the many rebates and tax incentives available make this decision a lot more affordable. Here are some of the most important solar tax incentives for Colorado residents to know.
State Solar Tax Incentives in Colorado
While Colorado lacks any statewide rebate for solar panels, there are a number of tax incentives and writeoffs that homeowners can still take advantage of.
Sales & Use Tax Exemption
To help mitigate the cost of solar, the Colorado government has exempted the purchase of solar panels and peripheral components from sales and use taxes. With the Colorado state sales tax at 2.9%, this represents a modest cost savings compared to the total price tag if sales tax were included.
Property Tax Exemption
One worry that some homeowners have with solar is the potential for increased property taxes. After all, while solar panels can certainly increase your home’s value, many home upgrades also have reduced value overall as a result of paying more in property taxes. However, new solar installations are exempt from the value calculation used to assess property taxes, which is also great news for homeowners!
Municipal Tax Credits
While the state of Colorado has no statewide rebate program, many municipalities within our state have put together programs of their own. These local-level programs may provide various rebates to homeowners looking to purchase and install solar, helping to further incentivize these upgrades.
Denver is a prime example, with multiple solar incentive, rebate, and educational programs. Solar Switch Denver is a group buying program for residents, while the Climate Action Rebate program provides rebates of up to $4,000 covering up to 80% of the total project cost for purchasing and installing solar panels.
Aside from these rebates, there are also other municipality-specific programs (such as in Colorado Springs) and even programs created for customers of specific utility companies. Check with your utility provider to find out what incentives they may offer for solar installation.
Don’t Forget the Federal Solar Tax Credit!
Of course, in addition to all of this, homeowners throughout the United States have access to an excellent tax incentive through the federal solar tax credit, or the Residential Clean Energy Credit.
Through 2032, residents throughout the U.S. can get a tax credit for up to 30% of the cost to purchase and install a new solar array. This is a major discount, as this incentive is a credit off of your end-of-year tax bill, rather than a deduction on your taxable income.
Take Advantage of Colorado Solar Tax Credits Today
While there may not be a statewide tax credit here in Colorado, the solar tax incentives and available rebates are still numerous for residents of our state. Between sales and property tax exemptions, the federal rebate, and excellent municipal programs like the new Denver solar rebate, solar has never been more heavily incentivized. With the major savings available to homeowners, your solar array will be able to pay itself off much faster, unlocking much greater savings over the life of your system.
If you’re looking to join the green energy revolution and take ownership of your energy needs, Elite Roofing & Solar can help! Book your solar consultation today.