Wildfire is the greatest natural threat across most of Colorado. The State is well aware of this and has a generous incentive for those who do mitigation work on their property. If you did work in 2020 to make your property safer, you can subtract 50% of the costs from your taxable Colorado income, up to a maximum of $2500.
If you are a resident and have done work to reduce fuels and wildfire threats you can claim this subtraction on your Colorado state tax return. You cannot count your own time and labor, but payments to a contractor, the purchase of a chainsaw or rental of an all-terrain vehicle, truck, tractor or trailer are eligible. The chainsaw or equipment rental must be primarily for mitigation work that follows the standards for creating defensible space around structures, creating fuel breaks, thinning vegetation for wildfire and various methods for dealing with woody slash. The Colorado State Forest Service, Colorado Division of Fire Prevention and Control, and the National Fire Protection Association all have similar guidelines for wildfire mitigation that can help protect your home.
Wildfire Adapted Partnership, a local non-profit, works with these organizations to offer guidance and planning for your wildfire protection.
FYI Income 65 explains all the details. You will need to provide copies of receipts to back up your claim. The Colorado Department of Revenue publication can be found here.
The income subtraction will remain in effect through 2024 if you are planning more work for the future.
If you have any questions about this or other wildfire protection issues, you can contact Bill Trimarco, Wildfire Adapted Partnership at btrimarco@wildfireadapted or (970) 398-0305.
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