17
May

Did you know that if you perform certain wildfire mitigation measures on your property, you could be eligible to claim a subtraction from your Colorado income tax? This subtraction is equal to 50% or 100% of all qualifying costs needed for mitigation, up to $2,500 per year.Can You Qualify?
As long as you meet specific qualifications and perform the wildfire mitigation measures around your property, you may be eligible for the wildfire mitigation tax subtraction. You must be the owner of record for any private land that the mitigation process is carried out, including through fee simple interest, easement, right of way, and lease. This ownership can be sole or joint.
You cannot claim for the mitigation on public land, regardless of whether you have some type of easement or right of way.

What Counts as Qualifying Costs?

1. The fire mitigation subtraction is available for out-of-pocket expenses that you incur while performing the fire mitigation measures. This can include the creation of defensible space, creating fuel breaks, thinning any woody vegetation, and any secondary treatments.
2. You will need to have a receipt for any money that you spend on the mitigation measures. This can include a receipt from a contractor to do the work, the hiring of items to do it yourself, or the purchase of items.

However, a financial subtraction cannot be gained in lieu of time or the donation of materials and labor. You also cannot claim the fees for certification or inspections or for any grants and cost sharing for the measures to take place.
Any claims must be for mitigation directly. You can’t buy an item for work that may have some mitigation benefits and claim it for the tax subtraction. Supporting documentation will be required when making your claims and there is a limitation of $2,500, regardless of the amount you spent.

For any questions about our fire mitigation services, contact Colorado Mastication at (719)400-9104.