Tax incentives have the potential to grow and bring significant benefits to Brazilian cities
Although it is one of the most well-known taxes, few people are aware of the important extra-tax functions it imposes. Urban and territorial land tax (IPTU) he has. Even with its eminently revenue-generating role, the IPTU remains an important tool for directly influencing the economy and taxpayer behavior.
With this in mind, the concept of Green IPTU or Ecological IPTU emerges.
As its name already indicates, IPTU Verde is a fiscal initiative, at the municipal level, aimed at promoting sustainable practices in urban properties, providing financial incentives to owners who adopt measures that contribute to environmental preservation and sustainability.
Public incentive, in addition to allowing the country to align with the current global scenario – such as the climate objectives assumed by Brazil in Paris Agreement and updated at Conference of the Parties (COP) 26 -, also aims to implement constitutional precepts (e.g. Article 225 of the 1988 Federal Constitution).
But after all, what are the advantages of ecological IPTU for the taxpayer?
In addition to promoting a healthier environment, owners who adopt the practices necessary for tax incentives can obtain significant discounts on the amount of the tax, representing considerable savings.
Green IPTU eligibility criteria vary depending on the municipality, but generally include initiatives related to energy efficiencyuse of water resources, ecological construction, waste management and even afforestation.
The first step towards obtaining the ecological IPTU is to check whether your municipality adopts the tax incentive. Next, it is necessary to attach the necessary documents to submit an application for membership in the program, in accordance with local legislation. From then on, the responsible organization is responsible for analyzing the documents presented.
Despite the benefits, implementing Green IPTU faces many challenges, such as the need for a larger initial investment to adopt sustainable practices (despite subsequent returns) and cultural resistance to change from traditional construction methods. Additionally, many municipalities that grant tax incentives do so only for new construction, thereby discouraging the adoption of sustainable practices in existing buildings.
It is clear, however, that with the support of public authorities and public awareness, tax incentives have real potential to expand and bring significant benefits to Brazilian cities.
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