Gov. Phil Murphy signed legislation Jan. 30 that offers incentives for certain deliveries of and costs for conducting environmental declaration analyses of low carbon concrete.
The bill, Senate Bill 287/Assembly Bill 2234, provides corporation business tax (CBT) and gross income tax credits for these efforts.
Incentives will further be provided for the delivery of low carbon concrete used in state construction and improvement projects. This includes concrete that has lower carbon emissions associated with its production, including mining, refining, manufacturing or shipping, or that utilizes carbon capture, utilization or storage technology to remove recycle carbon dioxide generated through the manufacturing process.
The New Jersey Chamber of Commerce this week called out a coalition of advocacy groups that are trying to persuade Gov. Phil Murphy to renege on comments he made earlier this month, signaling that he supported the sunset of the Corporate Business Tax surcharge. Click here to read the story.
In a statement, Murphy said bills like these prove that steps being taken to combat climate change can also result in stimulating economic activity and growth.
“As our efforts to decarbonize our economy become more urgent, we must also ensure that they become increasingly more economically attractive,” said Murphy. “Together with the Clean Building Working Group I unveiled in October, this legislation will further support the construction of greener, cleaner buildings and roadways in New Jersey.”
Sen. Linda Greenstein, D-14th District, a sponsor of the legislation, said this bill signing represents a significant step forward in the efforts to combat climate change while promoting sustainable economic growth.
“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,” said Greenstein. “A win-win for our environment and economy.”
“The concrete industry is a leading industrial source of carbon emissions, and a significant portion of concrete produced in the United States is used for public projects,” said Assemblyman John McKeon, D-27th District, a bill sponsor. “With this new law, we are taking steps to create a healthier and environmentally safer New Jersey for future generations to enjoy.”
Ray Cantor, deputy chief government affairs officer, New Jersey Business & Industry Association (NJBIA), said in order to meet decarbonization goals, we will need new solutions that are able to address all areas of the economy.
“We must also incentivize the business community to further use innovative products and processes,” said Cantor. “This bill does exactly that, by providing tax incentives to developers to use low carbon concrete.”
Ed Potosnak, executive director, New Jersey League of Conservation Voters, also described the bill as an example of a “win-win.”
“It’s good for the environment and good for business by positioning New Jersey at the forefront of a growing low-carbon concrete industry,” said Potosnak. “Because concrete accounts for 7% of global carbon emissions, this law is an important step in mitigating climate change while also supporting New Jersey businesses.”