Wildfire mitigation can save you money on your Colorado income tax


By Bill Trimarco | Wildfire Adapted Partnership

With the wonderfully wet winter we are having, it is hard to think about wildfire right now. Tax deadlines are fast approaching, though. Since wildfire is the greatest natural threat across most of Colorado, the state offers a generous incentive for those who do mitigation work on their property. If you did work in 2022 to make your property safer, you may be able to subtract 50 percent of the costs from your taxable Colorado income, up to a maximum of $2,500. 

If you have done work to reduce fuels and wildfire threats on land that you own or lease, you can claim this subtraction on your Colorado state tax return. The mitigation work performed should follow the guidelines developed by the Colorado State Forest Service and the Colorado Division of Fire Prevention and Control. You can download a Home Ignition Zone Guide from https://csfs.colostate.edu/wildfire-mitigation/. 

You cannot count your own time and labor, but payments to a contractor for the purposes of creating defensible space around structures, creating fuel breaks, thinning vegetation for wildfire and various methods for dealing with woody slash are acceptable expenses. You can also list the cost of a chain saw if its primary purpose is for the practices listed above. You cannot include the cost of vehicles, like a truck, tractor or ATV, since they can be used for other purposes, but rental of equipment for mitigation uses can qualify.

You will need receipts and the addition of form DR 0104AD to your Colorado state income tax filling. Mitigation subtraction details and eligibility requirements are at https://tax.colorado.gov/sites/tax/files/documents/ITT_Wildfire_Mitigation_Measures_Dec_2022.pdf.

Wildfire Adapted Partnership, a local nonprofit, offers guidance and planning for your wildfire protection. If you have any questions about this or other wildfire protection issues, you can contact Bill Trimarco at btrimarco@wildfireadapted.org or (970) 398-0305.