SEC. 302. PARTIAL EXCLUSION FROM GROSS INCOME OF 
PAYMENTS RECEIVED FOR CERTAIN HAZ-
ARDOUS FUEL REDUCTION PROJECTS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139A the following new section: 
‘‘SEC. 139B. COMPENSATION FOR CERTAIN HAZARDOUS 
FUEL REDUCTION PROJECTS. 
‘‘(a) GENERAL RULE.—Gross income shall not in-
clude any hazardous fuel reduction payment in the State 
of Colorado. 
‘‘(b) DOLLAR LIMITATION.—The aggregate of the 
payments which may be taken into account under sub-
section (a) with respect to a taxpayer for a taxable year 
shall not exceed $10,000 ($20,000 in the case of a joint 
return). 
‘‘(c) HAZARDOUS FUEL REDUCTION PROJECTS PAY-
MENTS.—For purposes of this section, the term ‘haz-
ardous fuel reduction payment’ means any amount re-
ceived by the taxpayer from the United States during the 
taxable year as compensation for work performed in the 
State of Colorado as part of an authorized hazardous fuels 
reduction project conducted pursuant to section 102 of the 
Healthy Forests Restoration Act of 2003 (16 U.S.C. 
6512).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 303. DEDUCTIBILITY OF CERTAIN EXPENDITURES IN 
CONNECTION WITH IMPLEMENTATION OF 
COMMUNITY WILDFIRE PROTECTION PLANS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended— 
(1) by redesignating section 224 as section 225; 
and 
(2) by inserting after section 223 the following 
new section: 
‘‘SEC. 224. IMPLEMENTATION OF COMMUNITY WILDFIRE 
PROTECTION PLANS. 
‘‘(a) IN GENERAL.—In the case of a individual, there 
shall be allowed as a deduction an amount equal to the 
sum of the amounts expended during the taxable year for 
carrying out an eligible hazardous fuel reduction project 
on lands owned by such individual located in Colorado and 
identified for such a project in a community wildfire pro-
tection plan. 
‘‘(b) DOLLAR LIMITATION.—The aggregate of the ex-
penditures which may be taken into account under sub-
section (a) with respect to a taxpayer for a taxable year 
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shall not exceed $10,000 ($20,000 in the case of a joint 
return). 
‘‘(c) HAZARDOUS FUEL REDUCTION PROJECT.—For 
purposes of this section, the terms ‘hazardous fuel reduc-
tion project’ and ‘Community Wildfire Protection Plan’ 
have the same meaning as such terms have in the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6512). 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out this 
section.’’. 
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 
of section 62 of such Code is amended by inserting the 
following new item: 
‘‘(l) IMPLEMENTATION OF COMMUNITY WILD-
FIRE PROTECTION PLANS.—The deduction allowed 
by section 224.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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