Tax incentives for sustainable construction
Investing in energy efficiency within a real estate project in Colombia brings tax benefits: a deduction of up to 50% of the investment against income tax, accelerated depreciation, VAT exclusion and exemption from import duties. Four benefits on a single certificate.
UPME, Colombia’s Mining and Energy Planning Unit, is the body that assesses and certifies these investments. It works on specific goods and services: this insulation, this glazing, this design service. Capturing the benefit therefore depends on two things: a solid technical file and filing on time.
The regulatory framework
Law 1715 of 2014 created the incentives for renewable energy and Law 2099 of 2021 extended them to efficient energy management. The current procedure is set out in UPME Resolution 135 of 2025, amended by Resolution 400 of 2026, which among its fundamental changes established a continuous filing window: from 1 February to 15 December each year. Alongside it came a change of great importance for large-scale or phased projects: certificates no longer expire, so the procedure can be planned around the project’s real purchasing schedule.
The four benefits
Income tax deduction. Up to 50% of the value of the investment, applicable over a period of up to 15 years.
Accelerated depreciation. Up to 33.33% per year on the certified assets.
VAT exclusion. On the purchase of the certified goods and services.
Exemption from import duties. For imported equipment with no domestic production.
One rule is non-negotiable: the certificate has to exist before you buy, which means there is no retroactive procedure. The VAT on a purchase made without a certificate is lost.
FNCE or GEE: two different routes
UPME offers certification through two routes. Both can coexist within the same project, but only one benefit can be claimed on the same asset.
The FNCE route covers projects that generate electricity from renewable sources. In a building, the typical case is rooftop photovoltaics for common areas or self-generation: panels, inverters, mounting structures, batteries and their associated services are all on the official list.
The GEE route covers measures that reduce consumption; it demands more but covers almost everything a project can do in terms of sustainability. Here the project is certified by demonstrating the savings it achieves: through a calculation report of the savings against a baseline, and by fitting each measure into the categories of the national energy efficiency plan (PAI-PROURE).
The GEE methodology in the sustainable construction category
The consultancy that structures a project’s sustainability generates the tax benefit for the developer. The list dedicated to buildings includes a series of services worth keeping in mind: bioclimatic design to make use of sun and wind, energy modelling, commissioning and building energy certification services are all certifiable investments. These implications arise from the bioclimatic design approach itself.
Passive measures: roof and external wall insulation, reflective and heat-rejecting paints, glazing and solar control in glass, window automation for natural ventilation and wind-driven extractors.
Active measures: photoelectric sensors in common areas, metering and control of air conditioning with low-impact refrigerants, class A lifts (ISO 25745-2), pumps, motors and variable frequency drives.
What the GEE route asks for
The basis of the file to be submitted is the calculation report: baseline consumption, the scenario with the measures implemented, methodology and sources for every figure, and the resulting savings in consumption before and after (TJ/year). Added to that are the technical data sheets for each item with brand and reference, the itemised list valued before VAT, and the quotes or contracts for the services included. What is submitted to UPME is assessed technically within the stipulated timeframes.
How the procedure is prepared and filed
It runs through UPME’s online application (the Sistema Único de Usuarios). It is important to bear in mind that once filed, the application admits no changes or additions, so in phased projects the filings have to be planned and synchronised; UPME issues a single request for information and that response defines the case; and the certificate has to arrive before the purchases.
1. Preparation. Define the measures, the holder of the investment and the moment of purchase; assemble the calculation report and the supporting evidence. Maximum 70 items per application.
2. Filing. Between 1 February and 15 December, with payment of the assessment fee.
3. Assessment. Completeness review (10 working days) and technical assessment: up to 20 working days for FNCE, 30 for GEE.
4. Certificate. With it, VAT and duties are applied on each purchase; income tax and depreciation, in the holder’s tax return.
From the configuration to the model to the certificate
Are you assessing whether to apply these incentives to your projects? Our work is the technical component that decides the outcome, from the design stage onwards:
A complete GEE file. Energy modelling of the project, a calculation report of the savings articulated with PAI-PROURE, and evidence for each measure against the official list. Plus support in managing the procedure: structuring the application in UPME’s system as consultant, coordinating with the developer’s purchasing team and handling requests for information.
Certifiable bioclimatic design. Our studies of sun, wind, comfort and daylight do not merely underpin the measures that deliver comfort; they secure compliance with certifications, with Resolution 0194 of 2025 and with the UPME list.
Beyond UPME. Support with sustainable construction certifications (EDGE, CASA Colombia) —which open up green mortgages for buyers and preferential construction credit— and verification of Resolution 0194 of 2025, the mandatory minimum energy and water savings for new buildings. A single energy model feeds all three fronts.
