The Colorado Energy Office Announces Tax Credits for Geothermal Energy

Source: NASEO

The Colorado Energy Office (CEO) is now accepting applications for its Geothermal Electricity Tax Credit Offering (GETCO), which offers merit-based refundable tax incentives to encourage investment and production of geothermal electricity, a reliable and clean energy source.

Geothermal electricity production and geothermal technology deployment for heating and cooling have been identified as key to achieving Colorado's 100% renewable energy goal while bolstering energy efficiency, lowering costs, supporting workforce transition, and improving air quality. This tax credit is part of Colorado’s larger strategy to develop geothermal energy in the state, which also includes a ground source heat pump tax credit and a $12 million investment through the Geothermal Energy Grant Program.

GETCO offers two types of tax credits:

  1. Between 30% and 50% of exploration and development costs (qualifying percentage determined by project merit; capped at $5 million per project).
  2. $0.003 per kilowatt-hour of geothermal electricity produced (capped at $1 million per entity per year).

Applications are open until June 30, 2024, with priority given to projects that benefit communities and promote workforce development.

For more information and to apply, please visit the GETCO webpage.