First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 25-0872.01 Pierce Lively x2059
SENATE BILL 25-182
Senate Committees House Committees
Transportation & Energy
Appropriations
A BILL FOR AN ACT
C
ONCERNING ENCOURAGING THE RE DUCTION OF EMBODIED CARBON .101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
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. An embodied carbon improvement is a real property
installation or modification that is completed in a manner that generates
relatively less embodied carbon.
Section 1 of the bill adds embodied carbon improvements to the
list of new energy improvements that are eligible for property-assessed
SENATE
3rd Reading Unamended
April 17, 2025
SENATE
Amended 2nd Reading
April 15, 2025
SENATE SPONSORSHIP
Ball and Simpson, Amabile, Bridges, Cutter, Daugherty, Exum, Kipp, Winter F.
HOUSE SPONSORSHIP
Brown and Weinberg,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. clean energy financing provided by the Colorado new energy
improvement district.
Section 2 modifies the industrial clean energy tax credit so that
embodied carbon improvements are greenhouse gas emissions reduction
improvements.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly
2
finds and declares that nothing in Senate Bill 25-182 impacts the ability3
of a local governmental entity to review or approve eligible materials for4
installations or modifications to real property.5
SECTION 2. In Colorado Revised Statutes, 32-20-103, amend6
the introductory portion and (7); and add (4.5) as follows:7
32-20-103. Definitions. As used in this article ARTICLE 20, unless8
the context otherwise requires:9
(4.5) "E
MBODIED CARBON IMPROVEMENT " MEANS ONE OR MORE10
INSTALLATIONS OR MODIFICATIONS TO REAL PROPERTY USING ELIGIBLE
11
MATERIALS, AS DEFINED IN SECTION 24-92-118 (2)(b), THAT RESULT IN12
THE REDUCTION OF THE INSTALLATION 'S OR MODIFICATION'S EMBODIED13
EMISSIONS AS ESTABLISHED IN POLICIES CREATED BY THE COLORADO14
ENERGY OFFICE, CREATED IN SECTION 24-38.5-101, AND IN CONSULTATION15
WITH THE OFFICE OF THE STATE ARCHITECT.16
(7) "New energy improvement" means one or more on-site energy17
efficiency improvements,
EMBODIED CARBON IMPROVEMENTS , renewable18
energy improvements, resiliency improvements, or water efficiency19
improvements made to eligible real property that will reduce the energy20
consumption of or add energy produced from renewable energy sources21
with regard to any portion of the eligible real property.22
SECTION 3.
In Colorado Revised Statutes, 39-22-551, amend23
182-2- (2)(e) introductory portion and (2)(e)(XVIII); and add (2)(e)(XVIII.5) as1
follows:2
39-22-551. Industrial clean energy tax credit - tax preference3
performance statement - definitions - report - repeal. (2) Definitions.4
As used in this section, unless the context otherwise requires:5
(e) "Greenhouse gas emissions reduction improvements" means6
improvements that help to measurably reduce greenhouse gas emissions.7
"Greenhouse gas emissions reduction improvements" may include one or8
more of the following equipment purchases, improvements, and retrofits9
RETROFITS, OR INVESTMENTS:10
(XVIII) Material substitutions within industrial processes to11
reduce industrial process greenhouse gas emissions by a minimum of12
fifteen percent when compared to existing production practices; and13
(XVIII.5) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER14
J
ANUARY 1, 2026, EMBODIED CARBON INVESTMENTS , WHICH ARE
15
INVESTMENTS IN THE PRODUCTION OF ELIGIBLE MATERIALS , AS DEFINED16
IN SECTION 24-92-118 (2)(b), THAT RESULT IN THE REDUCTION OF THE17
ELIGIBLE MATERIALS' CRADLE-TO-GATE EMBODIED EMISSIONS , AS18
ESTABLISHED IN POLICIES CREATED BY THE COLORADO ENERGY OFFICE,19
CREATED IN SECTION 24-38.5-101, AND IN CONSULTATION WITH THE20
OFFICE OF THE STATE ARCHITECT. TO QUALIFY AS AN EMBODIED CARBON21
INVESTMENT, AN INVESTMENT MUST RESULT IN A FIFTEEN PERCENT OR22
GREATER REDUCTION IN CRADLE -TO-GATE EMBODIED EMISSIONS OF THE23
ELIGIBLE MATERIALS WHEN COMPARED TO THE ELIGIBLE MATERIALS '24
CRADLE-TO-GATE BASELINE AS ESTABLISHED IN STANDARDS AND25
GUIDELINES CREATED BY THE COLORADO ENERGY OFFICE AND IN26
CONSULTATION WITH THE OFFICE OF THE STATE ARCHITECT . A27
182
-3- CRADLE-TO-GATE MEASUREMENT OR BASELINE CONSIDERS THE LIFE CYCLE1
STAGES FOR A PRODUCT INCLUDING , BUT NOT LIMITED TO, THE RAW2
MATERIAL EXTRACTION AND PROCESSING RELATED TO THE PRODUCT , AND3
THE TRANSPORT TO THE MANUFACTURER AND MANUFACTURING OF THE4
PRODUCT.5
SECTION 4. Act subject to petition - effective date. This act6
takes effect at 12:01 a.m. on the day following the expiration of the7
ninety-day period after final adjournment of the general assembly; except8
that, if a referendum petition is filed pursuant to section 1 (3) of article V9
of the state constitution against this act or an item, section, or part of this10
act within such period, then the act, item, section, or part will not take11
effect unless approved by the people at the general election to be held in12
November 2026 and, in such case, will take effect on the date of the13
official declaration of the vote thereon by the governor.14
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