Karnataka To Offer Tax Incentives To Builders, Buyers Of Green Buildings
Soon, investing in a green building project in Karnataka could be rewarding for both developers as well as homebuyers. Aimed at encouraging developers and buyers, the Karnataka government, under its green policy, has proposed a number of incentives.
These incentives would benefit the developers and buyers of both residential and commercial properties.
The green buildings in the state are proposed to be incentivised on the basis of the benchmarks prescribed by green building certification systems, including Leadership in Energy and Environmental Design (LEED), Indian Green Building Council (IGBC), Green Rating for Integrated Habitat Assessment (GRIHA) and Excellence in Design for Greater Efficiencies (EDGE).
The discount rate to be offered will depend on the rating the properties have received.
- Five star or platinum rating would get a discount of 10 per cent,
- Four star or gold rating will get a discount of 7.5 per cent, and
- Three star or silver rating will get a discount of five per cent in property tax for a period three years.
However, after three years, the incentive will continue to be applicable if the structure adheres to the green building rating or certification.
Additionally, there is a rebate on stamp duty, which would be a reduction of one per cent on the apartments purchased under green-certified projects. Moreover, the government will reduce taxes and charges on purchase of green buildings. It has also assured of expediting provision of environmental clearances for such structures.