DENVER (KDVR) — Gov. Jared Polis has released his budget proposal for this year, and it includes incentives for Coloradans to transition to new energy sources.
Polis is proposing $120 million in annual tax relief to accelerate energy transitions in Colorado. For consumers, this could go toward electric vehicles, bikes, lawnmowers and leafblowers, as well as geothermal heating and cooling systems. On a larger scale, the rebates could also help fund hydrogen power, sustainable aviation fuel and modernized industrial facilities.
“This tax credit package will further incentivize clean energy aligned with Colorado’s climate and air quality goals, build upon and leverage new federal incentives and funding opportunities, reduce pollution, and continue to position Colorado as a national leader in the clean energy economy,” the governor’s proposal reads.
The Polis administration has set a goal for Colorado to reach 100% renewable energy by 2040.
Here’s how the governor’s proposed incentives are divided:
- Clean hydrogen use: $4-8 million
- Community geothermal and advanced geothermal electricity: $7-28 million
- Sustainable industry and aviation: $20-30 million
- Clean transportation: $25-75 million
- Electric lawn equipment: $9-10 million
Polis’ office said the ranges are because the credits will be scaled over time “to maximize impact.”
The energy credits are also “laser-focused” on transportation, buildings and industry for a reason. The governor’s office said those sectors “can most benefit” from federal incentives and funds from the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act of 2021.
The Colorado General Assembly must give the budget final approval. Lawmakers will convene for the new session on Monday.