Contact: Ed Potosnak
O: (609) 331-9922
C: (732) 991-7574
New Jersey to offer first-ever credits for low-carbon concrete
New Jersey to offer first-ever credits for low-carbon concrete New Jersey Gov. Phil Murphy (D) in Trenton during the State of the State address. (Aristide Economopoulos/Bloomberg News)
New Jersey Gov. Phil Murphy (D) on Monday signed a bill that gives companies tax credits for making concrete with lower carbon emissions, becoming the first state to offer such incentives, Stephen Lee reports for Bloomberg Tax.
Under the law, concrete makers in New Jersey can receive a credit of up to 5 percent of a project’s total concrete cost if they deliver low-carbon materials. Companies that deliver concrete using carbon capture, utilization and storage technology can receive a tax credit of up to 3 percent of a project’s total concrete cost.
Concrete is responsible for roughly 7 percent of carbon emissions globally, according to the clean-energy research group BloombergNEF. Most of its emissions come from making cement, a highly energy-intensive process in which clay and limestone are heated to more than 2,500 degrees Fahrenheit to turn them into a binding agent for sand, gravel or other coarse materials.
“This is an example of a win-win,” said Ed Potosnak, executive director of the New Jersey League of Conservation Voters. “It’s good for the environment and good for business by positioning New Jersey at the forefront of a growing low-carbon concrete industry.”