Gov. Phil Murphy has signed legislation supported by NJBIA that provides corporation business tax or gross income tax credits to concrete manufacturers that provide state-funded construction projects with low-carbon forms of concrete associated with reduced greenhouse gas emissions.
Bill S-287, sponsored by Senator Linda Greenstein (D-14) won final unanimous legislative approval last month and was signed into law late Monday by the governor. NJBIA supported the measure because it incentivizes the use of environmentally responsible low-carbon concrete through tax credits without imposing another regulatory mandate on businesses.
“In order to meet our decarbonization goals, we will need new solutions and be able to address all areas of our economy,” said NJBIA Deputy Government Affairs Officer Ray Cantor. “We must also incentivize the business community to further use innovative products and processes. This bill does exactly that, by providing tax incentives to developers to use low carbon concrete. We thank the sponsors and Governor Murphy for advancing this legislation.”
The bill gives concrete makers within New Jersey a credit of up to 5% of a project’s total concrete cost if they deliver materials with low levels of embodied carbon for state-funded projects requiring 50 cubic yards or more of concrete. The measure also offers a tax credit of up to 3% of a project’s concrete cost to companies that deliver concrete made using carbon capture, utilization, and storage technology. Tax credits would also be offered for the costs of preparing environmental product declaration analyses.
“As our efforts to decarbonize our economy become more urgent, we must also ensure that they become increasingly more economically attractive,” Murphy said. “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.
Senator Linda Greenstein (D-14) called the law a win-win for our environment and our economy. “It is the first of its kind in the country and will not only help to reduce emissions from the building sector, but also incentivize New Jersey businesses to invest in low-carbon technologies,” she said.
Assemblyman John McKeon (D-27) who sponsored the legislation in the Assembly, noted concrete manufacturing is a leading industrial source of carbon emissions, and a significant portion of concrete produced in the United States is used for public projects. “With this new law, we are taking steps to create a healthier and environmentally safer New Jersey for future generations to enjoy,” McKeon said.
Ed Potosnak, executive director, New Jersey League of Conservation Voters said the law is good for the environment and good for business because it “positions New Jersey at the forefront of a growing low-carbon concrete industry.”