HB 14-1159 Summary

• Exempts all sales, storage, and use of components used in biogas production systems from Colorado state sales and use taxes when biogas is produced for sale to power generators, as transportation fuel, or as renewable natural gas

• Defines "components used in biogas production systems" to include anaerobic digestion systems, biogas upgrade systems, and digested solids systems with detailed specifications of qualifying equipment and infrastructure

• Allows towns, cities, and counties to optionally exempt biogas production system components from local sales taxes only through express inclusion in their tax ordinances

• Permits use tax ordinances to recite that the use tax does not apply to storage and use of qualifying biogas production system components, consistent with the state exemption

• All exemptions under this bill expire and are repealed effective July 1, 2019