CO Sales Tax Incentive

Sales Tax Exemption for Energy Storage Systems

AI summary · 7/12/2026

Your purchase of an energy storage system for your home is exempt from Colorado sales tax, reducing the upfront cost of the equipment. To claim this exemption, you will need to provide documentation to the retailer or installer at the time of purchase that the system is for residential use.

You can offer customers the benefit of sales tax exemption on energy storage system sales for residential installations in Colorado. Ensure your customers have proper documentation of residential use to apply the exemption at the point of sale.

This sales tax exemption applies to energy storage systems installed in residential dwellings in Colorado, including low-income households. The program operates as a point-of-sale exemption rather than a rebate, reducing state sales tax revenue but lowering customer acquisition costs for energy storage adoption.

Program details

Program ID
22489
Effective
1/1/2023
Expires
1/1/2033
Last updated
12/24/2025

Eligibility

Sectors
residential low income residential
Technologies
lithium-ion

Program summary

The sale, storage, and use of energy storage systems for residential dwellings is exemption from sales tax in Colorado.

Contact & resources

Please verify current program details with the administering agency before making any financial decisions.

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