The Investment Allowance Scheme (IAS) for the construction industry helps firms achieve higher levels of productivity through providing tax incentives for investments in productive equipment for construction-related works, and construction-related manufacturing facilities. Examples include automated concrete distribution systems, 3D concrete printing, and construction robots.
The scheme allows firms to offset up to 50% of the approved fixed capital expenditure incurred on construction equipment and machinery against their taxable income.
As announced at MND’s COS 2023, the IAS will be extended for 5 years starting from 1 Jan 2024. Firms are encouraged to invest in the latest productive systems and re-design processes to improve productivity across multiple tasks for greater impact. For more information, please refer to the media release.
Who can apply
Applicants must meet the following eligibility criteria at the point of application:
- The applicant must be a construction-related registered business in Singapore.
- The equipment must be new at the time of purchase, represent the latest advanced technology, and able to achieve at least 30% productivity improvement at trade level.
- The applicant’s purchase of the equipment must be used in Singapore.
- The minimum total capital investment per application is $1 million.
- The minimum capital investment for each equipment is $100,000. Applicant may apply for more than one piece of equipment in a single application.
- The applicant must not have signed or confirmed a contract with or made any payment to a supplier, vendor or third party in relation to the purchase of the equipment before the application.
- The submission of application does not automatically entitle the applicant to the incentive/investment allowance. Each application will be subject to evaluation and approval based on its merits.
- Applicants may be required to submit additional supporting documents to facilitate evaluation of the application. Application will only be processed provided that the complete relevant supporting documents are received.
- Applicants who are unsure may contact BCA before submitting their application.
How to apply
The scheme will be open for applications from 1 Jan 2024. Interested firms may submit an Enquiry on Investment Allowance (IA) Scheme from 1 Jan 2024.