HB 13-1012 Summary

• Allows landowners to deduct 50 percent of wildfire mitigation costs from Colorado state income tax for tax years 2014-2024, with a maximum deduction of $2,500 per year or total federal taxable income, whichever is less.

• Requires wildfire mitigation measures to occur in wildland-urban interface areas and comply with Colorado State Forest Service standards, including defensible space creation, fuel breaks, vegetation thinning, and woody fuel treatments.

• Defines eligible costs as actual out-of-pocket expenses documented by receipt, excluding inspection fees, grants, in-kind contributions, and cost-sharing arrangements.

• Limits deductions for joint filers to $2,500 combined annually and restricts deductions for properties with multiple owners to only one individual in the ownership group.

• Extends the deduction through December 31, 2025, and extends the related watershed protection and forest health projects section from July 1, 2013 to July 1, 2023.