Pact on Tax Revenue Sharing

This new pact on tax revenue sharing between the Federation, the Länder and the municipalities, allows more flexibility for housing support schemes. The Federal Act on Revenue Sharing now explicitly suggests spending part of the funds for greenhouse gas (GHG) mitigation measures. The Länder receive a total of € 1.78 billion annually from the Federation under the title of “housing support.” Although that money can also be spent for purposes other than housing (on improving infrastructure, for example). The GHG mitigation effect from housing support schemes therefore largely depends on specific political intentions followed by the individual Länder. The conferences of the environment and finance ministers of the Länder governments have declared their political willingness to spend a relevant part of the money for climate change purposes in order to achieve the targets indicated in the Austrian Climate Strategy 2010.