A landowner may claim an income tax subtraction for the actual out-of-pocket expenses they incur for wildfire mitigation measures performed in that tax year on their real property located within a wildland-urban interface area in Colorado. 

For tax years 2023 through 2025, landowners may also claim an income tax credit for wildfire mitigation measures if their federal taxable income does not exceed $120,000 for tax year 2023. For tax year 2024, the federal taxable income limit for the wildfire mitigation measures credit is $126,300. For tax years 2025, the federal taxable income limit will be adjusted to $129,200.

The publication Income Tax Topics: Wildfire Mitigation Measures provides general guidance regarding the wildfire mitigation subtraction and credit and supplements guidance provided in the Colorado Individual Income Tax Guide.

Claiming the Subtraction

Landowners must complete and submit a Subtractions from Income Schedule (DR 0104AD(opens in new window)) with their Colorado Individual Income Tax Return (DR 0104(opens in new window)) to claim the subtraction. They must also submit copies of receipts documenting the actual out-of-pocket expenses incurred for wildfire mitigation measures either along with their return or by using the E-Filer Attachment function on Revenue Online(opens in new window).

Claiming the Credit

Landowners must complete and submit an Individual Credit Schedule (DR 0104CR(opens in new window)) with their Colorado Individual Income Tax Return (DR 0104(opens in new window)) to claim the credit. They must also submit copies of receipts documenting the actual out-of-pocket expenses incurred for wildfire mitigation measures either along with their return or by using the E-Filer Attachment function on Revenue Online(opens in new window).