Grants and Funded Programmes

Land Intensification Allowance (LIA)

Type

Productivity

The Land Intensification Allowance (LIA) encourages industries in Singapore to use land more efficiently and focus on higher value-added activities.

The scheme also applies to the Built Environment (BE) sector—specifically for the construction of Integrated Construction and Prefabrication Hubs (ICPHs) and Design for Manufacturing and Assembly (DfMA) facilities.

How developers benefit

LIA incentive recipients can enjoy the following allowances on qualifying capital expenditure incurred for the construction or extension/renovation works amounting to Addition and Alteration (A&A) works of an approved LIA building:

An initial allowance of 25%;
Annual allowances of 5% are granted until the full 100% of the capital expenditure is covered.

Who can apply

Companies building ICPHs and/or DfMA facilities can apply for LIA if their planning permission (PP) applications were submitted on or after 1 January 2026.

Qualifying criteria

Types of activities and qualifying capital expenditures for ICPH and DfMA facilities under the LIA incentive framework.

Type of activities
ICPHs The prefabrication of: Individual components e.g. precast columns, beams, staircases; Integrated sub-assemblies e.g. Prefabricated Bathroom Units (PBUs); and/or Prefabricated Prefinished Volumetric Construction (PPVC).	DfMA facilities Fit-out works e.g. fitting-out of PBUs and PPVC modules; Storage of prefabricated components; and/or Production of other DfMA products e.g. Prefabricated Mechanical, Electrical and Plumbing (MEP) systems, structural steel, mass engineered timber, 3D concrete printing.
Types of capital expenditure
Capital expenditure incurred from the start of policy effective date, i.e. 8 March 2017 to the date of completion of the approved LIA building can qualify for the LIA incentive. The following items are qualifying capital expenditure: Cost of feasibility study on the layout of the building structure; Design fees of the building or structure; Cost of preparing plans for obtaining approval for the building or structure; Cost of piling, construction and extension or Addition and Alteration (A&A) works; Cost of demolition of an existing building or structure; Legal and other professional fees in relation to the approved construction or approved extension or A&A works; and Stamp duties payable in respect of title of the building or structure.

Type of activities

ICPHs

The prefabrication of:

Individual components e.g. precast columns, beams, staircases;
Integrated sub-assemblies e.g. Prefabricated Bathroom Units (PBUs); and/or
Prefabricated Prefinished Volumetric Construction (PPVC).

DfMA facilities

Fit-out works e.g. fitting-out of PBUs and PPVC modules;
Storage of prefabricated components; and/or
Production of other DfMA products e.g. Prefabricated Mechanical, Electrical and Plumbing (MEP) systems, structural steel, mass engineered timber, 3D concrete printing.

Types of capital expenditure

Capital expenditure incurred from the start of policy effective date, i.e. 8 March 2017 to the date of completion of the approved LIA building can qualify for the LIA incentive.

The following items are qualifying capital expenditure:

Cost of feasibility study on the layout of the building structure;
Design fees of the building or structure;
Cost of preparing plans for obtaining approval for the building or structure;
Cost of piling, construction and extension or Addition and Alteration (A&A) works;
Cost of demolition of an existing building or structure;
Legal and other professional fees in relation to the approved construction or approved extension or A&A works; and
Stamp duties payable in respect of title of the building or structure.

ICPHs and DfMA facilities must also fulfil these criteria:

Zoning of land;
Minimum Gross Plot Ratio (GPR); and
Ownership of building.

Check your LIA eligibility here:

Expression of Interest for Land Intensification Allowance (FormSG) (opens in new tab)

Information & Resources

BCA LIA Factsheet [PDF, 483.61 KB] (opens in new tab)

Income Tax Act 1947 Section 18C (opens in new tab)

Income Tax (Land Intensification Allowance) Regulations 2012 (opens in new tab)

Applications under the manufacturing/logistics sectors

For LIA applications in the manufacturing and logistics sectors, visit the Economic Development Board (EDB) website (opens in new tab) for more information.

Contact details

For more information on the LIA, you may contact the following:

Mr Lim Chin Haow
Email: Lim_chin_haow@bca.gov.sg

Ms. Tan Mui Kheng
Email: Tan_mui_kheng@bca.gov.sg