The Investment Allowance Scheme (IAS) provides tax relief for productive construction equipment. It aims to increase productivity in the construction industry by accelerating the pace of mechanisation.
With the implementation of the Construction Industry Transformation Map (ITM), the IAS will be extended to 2023 to provide continual support for mechanisation.
How do builders benefit
By tapping on the IAS, applicants will be able to upgrade their capability, increase productivity, and receive tax relief on approved capital expenditure. Expenditure incurred by Singapore-registered companies on new productive construction equipment will be eligible for investment allowance of 50%.
Who can apply
Applicants must meet the following eligibility criteria at the point of application:
- The applicant must be a registered business in the Built Environment sector in Singapore
- The equipment must be new at the time of purchase, represent the latest advanced technology, and achieve at least 20% productivity improvement at project or trade level.
- The applicant’s purchase of the equipment must be used in Singapore.
- The minimum capital investment of each equipment must be at least $100,000.
- 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.