2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › SALES AND USE TAX (§§ 39-26-101 — 39-26.1-101) › Article 26 - Sales and Use Tax (§§ 39-26-101 — 39-26-901) › Part 7 - SALES AND USE TAX EXEMPTIONS (§§ 39-26-701 — 39-26-734) › Section 39-26-731 - Eligible decarbonizing building materials - tax preference performance statement - legislative declaration - definition - repeal

(1)
(a)
The general assembly hereby finds and declares that:
(I)
The general assembly has committed to reduce greenhouse gases through numerous policy and regulatory measures to meet the goals established in 2019;
(II)
Great quantities of emissions are released during the manufacture and transport of building materials used in construction projects;
(III)
There is great potential for businesses and individuals in the state to reduce greenhouse gas emissions in construction projects by purchasing and using eligible decarbonizing building materials, which are building materials with a maximum acceptable global warming potential as determined by the office of the state architect;
(IV)
Providing a sales and use tax exemption for eligible decarbonizing building materials will encourage businesses and individuals to purchase and use those building materials rather than industry standard materials; and
(V)
The purchase and use of eligible decarbonizing building materials will help improve environmental outcomes and accelerate necessary greenhouse gas reductions to protect public health and the environment and conserve a livable climate by incorporating emissions information from throughout the supply chain and product life cycle into building material purchasing and use decisions.
(b)
In accordance with section
39-21-304(1)
, which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that the purposes of the tax expenditure created in subsection (3) of this section are to:
(I)
Induce certain designated behavior by taxpayers, specifically the purchase and use of eligible decarbonizing building materials; and
(II)
Contribute to the state's effort to achieve its climate goals.
(c)
The general assembly and the state auditor shall measure the effectiveness of the exemption in achieving the purposes specified in subsection (1)(b) of this section based on the quantity of eligible decarbonizing building materials sold and used in the state. The Colorado energy office and office of the state architect shall provide the state auditor with any available information that would assist the state auditor's measurement.
(2)
As used in this section, unless the context otherwise requires, "eligible decarbonizing building materials" means building materials that have a maximum acceptable global warming potential as determined by the office of the state architect pursuant to section
24-92-117
. "Eligible decarbonizing building materials" includes:
(a)
Asphalt and asphalt mixtures;
(b)
Cement and concrete mixtures;
(c)
Glass;
(d)
Post-tension steel;
(e)
Reinforcing steel;
(f)
Structural steel; and
(g)
Wood structural elements.
(3)
On and after July 1, 2024, all sales, storage, and use of eligible decarbonizing building materials that are on the list of eligible materials maintained by the office of the state architect pursuant to section
24-92-117(7)
, are exempt from taxation under parts 1 and 2 of this article 26.
(4)
By January 1, 2024, the office of the state architect shall provide the list it compiles and maintains pursuant to section
24-92-117(7)
to the department of revenue. Based on the list from the office of the state architect, the department shall create and maintain a database of products, including the manufacturers of the products, that are eligible for the sales and use tax exemption allowed pursuant to this section for use by entities that sell decarbonizing building materials.
(5)
This section is repealed, effective July 1, 2034.
Added by 2022 Ch. 333,§4, eff. 8/10/2022.
2022 Ch. 333, was passed without a safety clause. See Colo. Const. art. V, § 1(3).