Murphy signs bill offering tax credits for low-carbon concrete

State Sen. Linda Greenstein and New Jersey environmental leaders celebrated Gov. Phil Murphy’s signing of a bill that will provide a tax credit for use of low-carbon concrete.

Concrete is the most widely used substance on Earth. Many people don’t realize its production is extremely carbon intensive, accounting for more than 7% of atmospheric carbon pollution. This law will help reduce emissions from the building sector while simultaneously providing a market for New Jersey businesses to be competitive in developing low-carbon technologies for use in manufacturing.

The bill, which was co-sponsored by Assemblyman John McKeon (D-Madison), had nearly unanimous bipartisan support in both the Senate and the Assembly.

“By encouraging the use of low-embodied carbon concrete, we are taking a crucial step towards decarbonization in New Jersey,” Greenstein (D-East Windsor) said. “Not only will this bill help to drastically decrease our carbon emissions, but it will also provide economic benefits for the manufacturers of greener technology and help ensure that future generations will be able to enjoy our beautiful state and all that it offers.”

Ed Potosnak, executive director of the New Jersey League of Conservation Voters, called it 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,” he said. “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.”

Eric Miller, New Jersey energy policy director at the Natural Resources Defense Council, agreed.

“This bill will help ensure that concrete purchased by the state is cleaner and will reward those concrete suppliers who overperform state-established standards by adopting new techniques and technologies,” he said. “This is the first such incentive program in the United States. It’s a win for the climate and for innovation and a model for other states.”