The tax benefits include an investment allowance based on a specified percentage (not to exceed 100%) of the amount of the fixed capital expenditure incurred on an approved project. Typically, the investment allowance is 30% or 50% of the qualifying fixed capital expenditure. The fixed capital expenditure must be incurred within a qualifying period of three years, and any unused investment allowance can be carried forward and set off against chargeable income in future assessment years.
The eligibility requirements include an achieve percentage of improved energy efficiency, and can be satisfied by such projects as lighting systems, HVAC systems, compressed air systems, fans, blowers and pumps, motor and drive systems, water-heating systems, chillers, cooling and refrigeration systems, boiler plant systems, combustion systems, process dryers, furnaces and kilns.
The qualifying investment period is from 1 March 2015 to 31 March 2021.
Read a July 2015 report [PDF 301 KB] prepared by the KPMG member firm in Singapore: Investment Allowance for Energy Efficiency Scheme
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