3. Examples of tax exemptions to encourage sustainable construction
a. National Laws and Resolutions
Law 27467, Budget of Expenditures and Resources of the National Administration 2019, through which the Government of Argentina grants tax discounts related to the purchase of environmentally friendly technologies.
Resolution No. 196-2020 of the National Mining and Energy Planning Unit of Colombia, which approved a VAT exclusion (19%) and income tax deduction (25%) for project design services and technical solutions that are energy efficient.
b. Subnational Decrees
Decree 29,100 of November 9, 2017 of the Municipality of Salvador de Bahia in Brazil, which grants a discount of up to 10 % of the Urban Property and Land Tax (IPTU), to property owners who adopt measures that stimulate the protection, preservation and recovery of the environment. As well as a discount in the Otorga Onerosa para Construir, a fee to be paid for this concept for those construction projects, which wish to build over the established limits and comply with sustainability conditions. Ordinance No. 314-00-CMPP of the Provincial Municipality of Piura in Peru approved a 30% discount on the payment of taxes, for a period of two years, for projects of social interest that are certified as sustainable.
Revenue Law No. 28712/LXIII/21 of the Municipality of Zapopán of the State of Jalisco, Mexico, for fiscal year 2022 has established a temporary reduction in the payment of fees for the use of basic infrastructure, building licenses, construction supervision, among others, for projects that obtain EDGE or LEED certification.
The Central Bank of Indonesia increased the loan-tovalue ratio by 5% for properties that are certified as green.
c. Municipality of Guatemala
By Agreement COM-12-2022 of April 28, 2010, the municipality approved a 25% discount on the construction permit fee to reduce environmental impacts, if a sustainability certification is presented.