Colorado Wildfire Mitigation Tax Credit (2026)
Colorado offers a state income tax credit for wildfire mitigation. Up to $1,000 per year for defensible-space and fuels-reduction work (2025-2027).
State Income Tax Credit
Colorado's wildfire mitigation tax credit provides a direct reduction in your state income tax for qualifying defensible-space and fuels-reduction work.
Credit Details (Tax Years 2025-2027)
- Credit amount: 100% of out-of-pocket costs
- Annual maximum: $1,000 per year
- Income limit: Under approximately $129,200 annually
- Eligible work: Defensible-space clearing, fuel breaks, tree thinning, slash treatment to CSFS standards
- Grant-funded work: Does NOT qualify
Claim the credit on form DR 0104CR when filing your Colorado state income tax return. Provide receipts and documentation of completed work.
Qualifying Wildfire Mitigation Work
Colorado State Forest Service standards for eligible work:
Fuels Reduction
- ✓ Defensible-space clearing around structures
- ✓ Fuel breaks and thinning areas
- ✓ Tree thinning (density and spacing standards)
- ✓ Slash treatment and debris management
Key Requirements
- ✓ Work must follow CSFS standards
- ✓ Out-of-pocket costs only (no grant funding)
- ✓ Keep receipts and documentation
- ✓ Work must be on your residential property
How to Claim the Credit
Complete Qualifying Work
Perform defensible-space or fuels-reduction work following Colorado State Forest Service standards. Keep all receipts and photos.
File Form DR 0104CR
Complete form DR 0104CR (Colorado Renewable Energy Tax Credit) with your state income tax return. Include cost documentation.
Receive Tax Reduction
The credit reduces your Colorado state income tax dollar-for-dollar, up to $1,000 per year for eligible costs.
See What You Qualify For
Answer a quick questionnaire to find out what grants, tax credits, and insurance discounts are available for your Colorado home.
Check your eligibilityFrequently Asked Questions
Common questions about Colorado's wildfire mitigation tax credit
Program Availability & Changes: Tax credits, eligibility criteria, and figures change over time. This guide reflects information accurate as of June 2026. Always verify details with official sources before making decisions.