The Karnataka Government found a new way to encourage both developers and home buyers to opt for green buildings. The state government plans to offer multiple tax incentives along with deduction in property tax and stamp duty.
These incentives will be applicable for both residential and commercial projects under the proposed Karnataka Green Building Incentive Policy. In fact, the urban development department (UDD) is following policies laid by states like Andhra Pradesh, Rajasthan, Punjab, Haryana, West Bengal and Sikkim.
Mahendra Jain, additional chief secretary, UDD confirmed the news and said that the authority is working on this policy and we aim to achieve energy efficiency, effective waste management and reduction of water consumption through the building’s life cycle. This also incorporates design, construction, maintenance and renovation. All green buildings will comprise of rainwater harvesting, garbage disposal plant, sewerage treatment plant and solar power.
According to the sources drafting the policy, the incentives in the green buildings will be based on the standards set 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].
The state government plans to offer 10% discount in property tax for three years on the green buildings that have five stars or platinum rating would get. Similarly to this, 7.5% discount on the property tax for buildings that have four-star or gold rating and the buildings having silver–rating will have 5% discount on property tax.
The rebate can be maintained if the green building falls under the same rating even after three years. Also, the stamp duty will also be deducted by 1% on purchase of apartments in various green-certified projects. More deductions can be expected on purchasing green buildings and environmental clearances will also take place at a fast pace.