Bill > SB182

This bill aims to encourage the reduction of embodied carbon (the total carbon emissions generated during the production, transportation, and initial processing of building materials) by making several key modifications to existing Colorado state laws. The bill defines "embodied carbon improvements" as installations or modifications to real property using eligible materials that reduce embodied emissions, as established by the Colorado Energy Office in consultation with the State Architect. It expands the definition of "new energy improvement" to include these embodied carbon improvements and introduces a new tax credit category for "embodied carbon investments" starting in 2026. To qualify for this tax credit, investments must result in at least a 15% reduction in cradle-to-gate embodied emissions (which considers the life cycle stages from raw material extraction through manufacturing) compared to a baseline established by the Colorado Energy Office. The bill also clarifies that these provisions do not impact local governmental entities' ability to review or approve materials for property installations or modifications. Additionally, the bill specifies that it will take effect after the standard 90-day legislative period, with a potential referendum option for voter approval in the November 2026 election.

Budget and Finance, Housing and Urban Affairs, Transportation and Infrastructure

https://leg.colorado.gov/bills/sb25-182