Colorado’s wildfire tax credit changes in 2027. Use the right tax-year rules.
For 2026, the maximum credit is $1,000 and the credit is not refundable. Starting in tax year 2027, enacted changes raise the maximum to $2,000, make it refundable and raise the income threshold. HAVRYO keeps those years separate.
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The credit follows eligible expenses. Not every resilience project.
The homeowner needs to distinguish qualifying wildfire mitigation from inspections, certifications, reimbursed costs and structural hardening that falls outside this specific tax credit.
Private-property mitigation
The credit is built around qualifying wildfire mitigation measures performed on eligible private property under Colorado law.
Third-party work
Current rules require eligible costs to be actual out-of-pocket expenses paid to a third-party service provider and documented by receipt.
Not every dollar qualifies
Inspection/certification fees, certain cost-sharing amounts and portions reimbursed by grants should not be counted as if they were eligible out-of-pocket costs.
Don’t mix in the roof
The 2026 State Auditor evaluation notes structural mitigation such as installing a fire-resistant roof is not covered by this tax credit.
Next year becomes a different benefit.
HB26-1289 extends the credit through tax year 2030 and changes several parameters beginning in 2027. That makes tax year a mandatory input in any HAVRYO eligibility or calculator experience.
HAVRYO provides decision support—not tax advice. Final eligibility and filing should be verified against current Colorado Department of Revenue guidance or a qualified tax professional.
2026: $1,000 → 2027: $2,000
The Office of the State Auditor's June 2026 evaluation shows the enacted increase beginning with tax year 2027.
2027 credit becomes refundable
HB26-1289 removes the prior excess-credit treatment and makes the applicable excess refundable beginning in 2027.
2027: up to $300,000 Federal AGI
This replaces the prior inflation-adjusted Federal Taxable Income framework for the credit beginning in tax year 2027.
Beetle-related thinning added
Beginning in 2027, qualifying measures can include specified thinning of woody vegetation affected by or at risk from mountain pine beetle or spruce beetle, subject to applicable standards.
Turn receipts into a defensible estimate.
A future HAVRYO calculator should never ask only “How much did you spend?” It should identify the tax year, expense type, reimbursement, provider and applicable income test before estimating a potential credit.
Check My Potential Credit →2026 and 2027 use materially different limits and treatment.
Classify the work before including the expense.
Remove grant-reimbursed or otherwise excluded portions.
Apply the correct tax-year income framework.
Preserve receipts and verify filing requirements against current official guidance.
Same mitigation expense. Different year, different rules.
Match the expense to the correct tax year before estimating the benefit or planning the work.
Check My Mitigation Expense →