CO HB1052

Converts the existing wildfire mitigation income tax deduction to an income tax credit of 25% of costs incurred, capped at $2,500 per year for tax years 2017-2019.

Allows unused credit amounts to carry forward for up to 5 years to offset future tax liability, applied first to earliest tax years.

Restricts credit to landowners with property in wildland-urban interface areas; limits joint filers to $2,500 total and allows only one owner to claim credit for property owned as tenants in common.

Defines eligible costs as actual out-of-pocket expenses documented by receipt for wildfire mitigation measures meeting Colorado State Forest Service standards, excluding inspection fees, donations, grants, and in-kind contributions.

Repeals the previous income tax deduction effective January 1, 2018 and repeals the new credit provision effective December 31, 2024.