The State of Colorado has began the appliance spherical for a tax credit program incentivizing electrical energy technology from geothermal assets.
The State of Colorado through the Colorado Vitality Workplace (CEO) has opened its first aggressive utility cycle for the Geothermal Electrical energy Tax Credit score Providing (GETCO). This is among the first state tax incentives for geothermal electrical energy tax funding and manufacturing within the US and goals to facilitate the deployment of geothermal know-how within the area.
The primary utility cycle is open till 30 June 2024. Extra info and utility supplies can be found on the GETCO webpage. Candidates should apply by the net grant portal. The CEO will likely be internet hosting info webinars for GETCO all through April, Might, and June.
GETCO was established by HB23-1272 “Tax Coverage that Advances Decarbonization.” The invoice was sponsored by Senators Lisa Cutter and Steve Fenberg and Representatives Mike Weissman and Junie Joseph, and signed by Governor Jared Polis following the 2023 legislative session.
In late 2023, Colorado additionally launched the Geothermal Vitality Grant Program which provides funding assist for the event of geothermal initiatives for electrical energy technology and area heating and cooling. A complete of USD 5 million was made obtainable for the primary spherical of funding, which closed earlier this yr.
Two sorts of incentives supplied
The GETCO provides two sorts of incentives – an funding tax credit score (ITC) and a manufacturing tax credit score (PTC).
The ITC is supposed for the exploration and growth of geothermal electrical energy assets. It may cowl as much as 30%-50% of eligible prices for chosen initiatives, to not exceed USD 5 million per venture. A complete of US 35 million is obtainable in ITCs by 2032.
The PTC will present USD 0.003 credit score for each kWh of electrical energy produced from geothermal assets, as much as USD 1 million per entity per yr by 2032.
In awarding tax credit, the CEO will prioritize initiatives primarily based on workforce growth potential, group resilience advantages significantly in rural or remoted communities, and proximity to disproportionately impacted and simply transition communities.
Supply: Authorities of Colorado
