Tax Incentive Available For Those Who Reduce Risk Of Wildfire
Summit County is one of the most beautiful places in Colorado, and we have so much to be
proud of. However, it’s no secret that wildfires have become more of a concern to our residents
in recent years. According to this article, officials are concerned that 2022 could be the worst
year for wildfires in Colorado’s history. If you own a home in Summit County or are hoping to
soon, this news can be very worrisome.
In an effort to mitigate the risk of wildfires, Colorado legislatures passed a bill incentivizing
homeowners for doing their part in preventing wildfires in the form of a tax credit called the
Wildfire Mitigation Measures Subtraction. Let’s take a look at what you need to know about
this new tax credit.
What Is The Wildfire Mitigation Measures Subtraction?
The Wildfire Mitigation Measures Subtraction is a tax incentive available for Colorado taxpayers
who performed work or took measures to reduce the threat of wildfires on their property. 50%
of the cost of any payments made to contractors or the purchase of certain equipment used to
prevent wildfires can be subtracted from your taxable income, up to $2,500.
Who Qualifies For The Wildfire Mitigation Measures Subtraction?
In order to qualify for the Wildfire Mitigation Measures Subtraction, Colorado taxpayers must
be able to show receipts for the expenses they incurred to create a safer environment and must
fall under one of these categories regarding their interest in the property:
* Fee Simple Interest
* Easement for recreational purposes
How To Prepare For Wildfires
If you aren’t sure how to prepare for wildfires or how to reduce the risk of a wildfire destroying
your property, there are tons of resources available. You can contact Summit Fire to have them
come to your property for a consultation on what strategies would work best on your property.
Some examples of wildfire mitigation efforts are establishing fuel breaks and thinning woody
vegetation on your property for the purpose of reducing the wildfire risk to structures.
Have Any Other Questions?
If you have any questions about this tax incentive or about wildfire prevention, please don’t
hesitate to ask. We all need to do our part to reduce the threat of wildfires in Summit County
and we are happy to share whatever information we may have.