SB 25-182

Senate Bill 25-182, known as the Embodied Carbon Reduction Act, aims to reduce carbon emissions associated with building and infrastructure materials. It allows property owners to use special financing for improvements that lower embodied carbon emissions in construction projects. Additionally, it provides tax credits to businesses that invest in materials resulting in at least a 15% reduction in carbon emissions compared to standard options. The bill has been signed into law, meaning these financing and tax credit provisions are now available to those who qualify.

Official Summary

Embodied carbon is the carbon associated with greenhouse gas emissions arising from the production, construction, use, and end-of-life of products or systems used in the construction of buildings, roads, and other infrastructure. Section 1 of the act adds embodied carbon improvements to the list of new energy improvements that are eligible for property-assessed clean energy financing provided by the Colorado new energy improvement district. An embodied carbon improvement is one or more installations or modifications to real property using eligible materials that result in the reduction of the installation's or modification's embodied carbon emissions. Section 2 modifies the industrial clean energy tax credit so that embodied carbon investments are greenhouse gas emissions reduction improvements that, if certified, are eligible for the credit for a portion of the capital costs incurred in placing them in service. An embodied carbon investment is one that results in a 15% or greater reduction in cradle-to-gate embodied emissions of eligible materials when compared to the eligible materials' cradle-to-gate baseline. (Note: This summary applies to this bill as enacted.)

Votes