Tax Incentives for Performing Wildfire Mitigation

The State of Colorado provides certain tax incentives for performing wildfire mitigation measures on property located in Colorado. For tax years 2024 and prior, an income tax subtraction was allowed. For tax years 2023 through 2027, an income tax credit is allowed. Both the subtraction and the credit are allowed to qualifying taxpayers who incur actual out-of-pocket expenses for wildfire mitigation measures on their property. For tax years 2023 and 2024, a taxpayer who meets all applicable requirements may claim both the subtraction and the credit for the costs they incur in performing wildfire mitigation measures.

This publication is designed to provide general guidance regarding the wildfire mitigation measures subtraction and credit and to supplement guidance provided in the Colorado Individual Income Tax Guide

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For additional information the website can be found at Income Tax Topics: Wildfire Mitigation Measures