If enacted, HB5461 would mark a significant amendment to the Illinois Income Tax Act, encouraging concrete manufacturers to adopt low embodied carbon technologies. It mandates that those seeking tax credits for delivering concrete to state projects must provide certified environmental declarations detailing the global warming potential of their products. This incentivization aligns with state procurement practices and aims to catalyze market shifts toward more sustainable construction practices that are vital given the expected increase in concrete use due to urban development and infrastructure renewal.
Summary
House Bill 5461, titled the Concrete Carbon Utilization, Reduction, and Removal Breakthrough Act, is an initiative aimed at addressing the carbon emissions associated with concrete production, particularly those linked to Portland cement, a major contributor to greenhouse gas emissions. The bill establishes performance-based tax credits to encourage concrete producers to utilize materials and methods that reduce embodied carbon emissions in state-funded projects. These credits are designed to support innovations in concrete production that capture and store atmospheric carbon, thereby contributing to broader climate change mitigation efforts.
Contention
The bill could lead to debate over its financial implications, particularly concerning the state budget and the availability of tax credits. The cap on tax credits issued under this Act at $10 million annually brings attention to balancing fiscal responsibility with environmental goals. While proponents argue for the necessity of such measures to combat climate change and promote sustainability, critics may voice concerns regarding the potential for increased costs in concrete procurement and the challenges of ensuring compliance among producers. The success of the bill hinges on its implementation and the extent to which these tax incentives effectively influence production practices without unintended economic repercussions.
Provides CBT and gross income tax credits for certain deliveries of low carbon concrete and for costs of conducting environmental product declaration analyses of low carbon concrete.
Provides CBT and gross income tax credits for certain deliveries of low carbon concrete and for costs of conducting environmental product declaration analyses of low carbon concrete.