New Jersey Signs Law To Promote Low-Carbon Concrete With Up To 8% Tax Incentive

New Jersey Signs Law To Promote Low-Carbon Concrete With Up To 8% Tax Incentive - Carbon Herald
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New Jersey Governor Phil Murphy recently signed bill S287, which provides corporation business tax and gross income tax credits that are intended for concrete mixes used in state funded construction projects.

“It’s bills like these that prove that the steps we take to combat climate change can – and will – stimulate economic activity and growth in the industries that remain key to our climate solution. Together with the Clean Buildings Working Group I unveiled in October, this legislation will further support the construction of greener, cleaner buildings and roadways in New Jersey,” said Governor Murphy.

The law will come into effect in 2024 and will cover concrete producers that provide a minimum of 50 yards of concrete for any state funded construction projects like bridges, foundation and sidewalks. Producers will be required to prepare and submit an Environmental Product Declaration that includes a score for Global Warming Potential (GWP). The value of GWP will reflect the CO2 generated per 1 cubic meter of concrete.

If the score is below the baseline – something to be established by the New Jersey Department of Environmental Protection before next year – the company will be eligible for a tax up to 8% of total contract cost.

Relevant: Indianapolis Airport To Use Low Carbon Concrete For Its New Runway

The New Jersey low-carbon concrete program is capped at an annual budget of $10 million and will be given on a first-come-first-serve basis, with a limit of $1 million per producer.

The law has been two years in the making, with a crucial role from OpenAir Collective volunteers Sue Dorward and Sean Mohan and support from the New Jersey League of Conservation Voters, NRDC, and a broad coalition of environmental and private stakeholders.

If you are interested in helping this become a reality in your state or city, the OpenAir Collective is organizing a free webinar on February 8th at 11am EST, that will provide insights about the New Jersey campaign from the people and organizations that made it a reality.

Read more: Report Shows Massive CO2 Reduction In Cement And Concrete Production

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