NY A6566: Low Carbon Tax Perks Need EPD Proof
Sales‐tax exemption on concrete, steel, asphalt, and other materials in New York will soon hinge on a single document: a verified Environmental Product Declaration. Assembly Bill A 6566, the “Building Embodied Carbon Breakthrough Act,” pairs a carrot (up to $10 k per plant to cover EPD costs) with a stick (15 % GWP cuts required to claim the exemption). If your mix designs or melt routes live in filing cabinets, now is the moment to dig them out.
What the Act Really Does
A 6566 rewires the tax code so that “low carbon” building products skip state and local sales tax. To count, a product’s global-warming potential (GWP) must beat the New York State Energy Research and Development Authority (NYSERDA) threshold by at least 15 % (NYS Assembly, 2025). The proof point is a third-party verified EPD that follows ISO 14025.
Sales-Tax Holiday: Eligible Products
The bill names concrete, steel, aluminum, asphalt, insulation, glass, and interior finishes. Anything outside that list can join once NYSERDA adds it to the approved materials roster. Expect the agency to publish the first GWP thresholds during 2026 rule-making.
Grant Money: $10 000 per Plant for EPDs
Part B directs NYSERDA to reimburse concrete, asphalt, aggregate, and cement producers for EPD work—up to ten grand per facility (A 6566-B, 2025). Coverage spans LCA consulting, software, and internal labor caps. First-come funding will likely disappear fast given that New York counts more than 500 ready-mix plants.
Why EPDs Sit at the Center
EPDs convert lab results and utility data into a single, comparable GWP figure. Regulators like them because the math follows a published Product Category Rule. Specifiers like them because they slot neatly into tools such as EC3. Manufacturers should like them because they unlock a permanent tax edge instead of a one-off rebate.
Timelines You Cannot Ignore
- Bill becomes law on January 1 after the governor’s signature.
- Sales-tax savings start the same date, but only for products that already carry a qualifying EPD.
- NYSERDA must deliver the first embodied-carbon code study by May 1 the following year, a signal that outright carbon caps could follow (NYSERDA, 2025).
Out of State but Still in the Game
Projects sold into New York often source rebar, glazing, or flooring from neighboring states. If your invoice includes New York sales tax, the exemption cuts price instantly. If you do not charge the tax, an EPD still helps your customer meet owner-driven carbon caps cropping up in cities like Boston and Philadelphia.
Data Prep Without the Pain
Dig up twelve months of energy bills, raw-material receipts, and plant throughput. Keep mix or alloy recipes cleanly version-controlled. A smart LCA partner will map each input to the correct life-cycle module and chase missing utility meters so your engineering leads are not trapped in spreadsheet purgatory. Do yourself a favour and choose a team that can onboard multiple plants in parallel.
Wrap-Up: Seize the Early-Mover Advantage
A 6566 bundles tax relief and grant cash into one tidy package, but only for manufacturers that can surface a compliant EPD quickly. Beat the rush, secure the subsidy, and position your catalog as the easy choice for every New York spec.
Frequently Asked Questions
Does every product need a separate EPD to claim the tax exemption?
Yes. The statute calls for product- and facility-specific Type III EPDs, not generic industry averages.
Can I use an EPD published under EN 15804 instead of ISO 14025?
ISO 14025 is mandatory, but most EN 15804 EPDs also reference ISO 14025. Check that the declaration clearly states compliance before you rely on it.
Is the $10 000 grant paid upfront or as reimbursement?
Reimbursement. NYSERDA will refund eligible costs after you submit invoices that document LCA work, software licenses, and internal labor rates.
What if my product hits the 15 % GWP cut today but the threshold tightens later?
The sales-tax break lasts five years per the bill language. You will need to refresh the EPD and re-qualify when that window closes.
About the Author
John brings a clear, research-driven perspective on the EPD, LCA and HPD space and keeps a close pulse on environmental trends and standards in North America, helping clients understand where the industry is heading and how to get there.
