Colorado Wildfire Mitigation Measures Income Tax Credit

Reimbursement

Cost share · Reimbursement, from Colorado Department of Revenue Taxation Division

A Colorado income tax credit for a landowner's own out of pocket cost of wildfire mitigation on private land they own. Qualifying work is creating defensible space around structures, establishing fuel breaks, thinning woody vegetation to reduce the risk to structures, and secondary treatment of woody fuels by lopping and scattering, piling, chipping, removing from the site or prescribed burning. The credit is a percentage of the cost up to an annual cap, and the Department publishes both by tax year.

The cost has to be a real payment to a third party contractor, documented by receipt. Buying or hiring tools for the landowner's own use does not count, and neither do inspection or certification fees, in kind contributions, donations, other incentives, cost sharing, or any expense paid out of a grant the landowner was awarded. That last exclusion matters: money from a county cost share programme cannot be claimed twice. Where this comes from

Source

Who qualifies Only a landowner who is an owner of record of the private Colorado land the work was done on, whether that interest is a fee interest, an easement, a right of way or a recorded lease. Nothing is allowed for work on publicly owned land. The work must meet or exceed the standards set by the Colorado State Forest Service or the Division of Fire Prevention and Control. A partnership or S corporation that owns the land as an entity generally cannot claim it.

How to apply Claim it on the Colorado income tax return for the year the work was paid for, keeping the contractor's receipts. The Department's own guidance page is the place to check the year's percentage and cap before relying on either.

Where it applies

All of Colorado

The Colorado county pages in this directory:

Run by

Colorado Department of Revenue Taxation Division

State agency

Visit tax.colorado.gov