On May 28, 2025, Colorado Governor Jared Polis signed SB25-182 into law, a bill that broadens the eligibility of projects under the state’s Commercial Property-Assessed Clean Energy Financing (C-PACE) program and Industrial Tax Credit Offering to include embodied carbon improvements. Embodied carbon improvements are defined as the use of building construction materials with lower carbon footprints. To be eligible for both the C-PACE program and industrial clean energy tax credits, projects would need to achieve at least a 15 percent reduction in embodied carbon emissions compared to a baseline. The baseline and greenhouse gas reduction improvements are established and assessed by the Colorado Energy Office in consultation with the Office of the State Architect.
The state’s C-PACE program allows commercial, multifamily, industrial, and agricultural property owners finance 100 percent of upfront costs for eligible energy improvement projects. Colorado’s Industrial Tax Credit Offering refunds industrial facilities for implementing greenhouse gas reduction projects up to $8 million per eligible project, through 2032 or until the $168 million in total available credits are reserved. For more information about Colorado’s 2025 legislative session, please click here.