Karnataka govt mulls tax incentives for builders, home buyers opting for green buildings
In a bid to encourage builders and home buyers to increasingly opt for eco-friendly buildings, the Karnataka government has proposed to provide an array of incentives, including reduction in property tax and stamp duty.
Under the proposed Karnataka Green Building Incentive Policy, the perks will be applicable for both residential and commercial buildings and the urban development department (UDD) is emulating policies put in place by states like Andhra Pradesh, Rajasthan, Punjab, Haryana, West Bengal and Sikkim.
Confirming the move, Mahendra Jain, additional chief secretary, UDD, said: “We are working on this policy. The idea is to achieve energy efficiency, effective waste management and reduction of water consumption through the building’s life cycle that includes design, construction, maintenance and renovation. These buildings will have rainwater harvesting, garbage disposal plant, sewerage treatment plantand solar power.”
Sources involved in drafting the policy say green buildings will be incentivized based on benchmarks prescribed by green building certification systems like LEED (Leadership in Energy and Environmental Design), IGBC (Indian Green Building Council), GRIHA (Green Rating for Integrated Habitat Assessment) and EDGE (Excellence in Design for Greater Efficiencies).
Green buildings having a five star or platinum rating would get 10% discount in property tax for three years. Similarly, it’ll be 7.5% for buildings with four-star or gold rating and 5% for three-star or silver-rated properties.
The incentive will continue after three years if the structure follows the green building rating/certification. Similarly, stamp duty will also be reduced by 1% on purchase of apartments in green certified projects. The government will further reduce taxes and charges on purchase of green buildings and environmental clearances for such structures will also be fast-tracked.