Selangor to Introduce Tax Rebates for Homes Equipped With Eco-Friendly Features Starting 2026

Selangor will roll out a new tax rebate initiative next year to encourage households to adopt eco-friendly technologies, marking one of the state’s most significant sustainability-driven incentives to date.

Menteri Besar Datuk Seri Amirudin Shari announced that homeowners who install approved green technologies will be eligible for up to 100% assessment tax rebate for the 2026 assessment year, subject to application and verification by their respective local councils.

This programme aims to accelerate the adoption of sustainable practices within residential areas across the state, complementing Selangor’s broader environmental agenda, which also influences demand patterns for assets such as industrial land in Selangor, modern industrial property in the Subang area, and sustainably designed commercial property in KL.

Tax Rebate Allocation by Local Authorities

Amirudin said major city councils will each provide a RM1 million tax exemption allocation for 2026:

• Petaling Jaya City Council (MBPJ)

• Shah Alam City Council

• Subang Jaya City Council

• Klang Royal City Council

Other municipal councils will offer RM200,000, while the Sabak Bernam District Council will allocate RM100,000 for the programme.

This initiative not only supports green living in landed and high-rise homes but also aligns with the sustainability ethos increasingly seen in new developments, from suburban housing to mixed-use hubs with demand for office space in Bukit Jalil, logistics facilities, and factory properties in Puchong.

Eco-Friendly Technologies Eligible for Rebates

Residents may receive rebates for installing or adopting:

• Solar photovoltaic panels to reduce reliance on the national power grid

• Rainwater harvesting systems

• Household waste separation infrastructure

• Electric vehicle (EV) charging units

• Food waste composting systems

These features reflect a growing market focus on energy efficiency and low-carbon living, trends now influencing both residential and commercial property segments statewide.

Amirudin highlighted MBPJ’s earlier success with a similar programme, which received 2,313 applications, awarding rebates totalling RM878,205.05—a strong indicator of public interest in sustainable home improvements.