Algarve municipalities give tax breaks to promote renewable energy

Buildings with renewable energy production will have reduced IMI

The municipalities of Aljezur, Monchique, Lagoa, Silves, Faro and Olhão accepted the challenge launched by the University of Algarve, through CRIA – Entrepreneurship and Technology Transfer Division, and joined together to design local fiscal policies with the aim of promoting the use of renewable energy sources that will later be implemented in municipalities of the Algarve region.

This challenge arises within the scope of the activities of the LOCAL4GREEN – LOCAL Policies for GREEN Energy project.

The Local4Green project «intends to work directly with municipalities in defining and implementing innovative tax policies, with a view to encouraging the use of renewable energy sources, both in the public and private sectors, preferably within the adopted Sustainable Energy Action Plans by public entities consigned to the Covenant of Mayors», explains the University of Algarve.

The project “will support the testing of innovative, green tax policies at the local level and monitor their results in the dissemination of renewable energy sources. Finally, it will facilitate the capitalization of best practices and their application in other municipalities, at national and transnational level”.

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The measures to be developed by the Algarve's municipalities include the reduction of construction works rates for new constructions with renewable production systems, the reduction of IMI rates for fractions of housing with renewable production systems, the reduction of municipal IRC rates ( pour) for buildings with renewable production systems, the reserved and free parking for electric vehicles and the partial contribution of the tourist pool to renewable generation.

Local4Green is financed by the INTERREG MED Program through Priority Axis 2 – Pursuing low carbon and energy efficiency strategies in specific MED territories: cities, islands and remote areas; Specific Objective 2.2 – Increase the share of local renewable resources in mixed energy plans and strategies in specific MED territories.

The project includes partners from the region of Valencia (Spain), Valletta (Malta), Zagreb (Croatia), Thermi (Greece), Rome (Italy), Ljubljana (Slovenia), Nicosia (Cyprus), Algarve (Portugal) and Tirana (Albania ).

With regard to Portugal, the Local4Green project also counts on the Regional Agency for Energy and Environment of the Algarve (AREAL), the Municipality of Loulé and the Municipality of Faro as associate partners.

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