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Application Guidelines for Energy Sector Incentive

Energy Efficiency Incentive

Companies Providing Energy Saving Services:

  1. Pioneer status with tax exemption of 70% of statutory income for a period of 5 years or Investment Tax Allowance of 60% on the qualifying capital expenditure incurred within a period of 5 years with the allowance deducted in each year of assessment be set-off against 70% of statutory income; and
  2. Import duty and sales tax exemption for equipment used in the related project, which are not produced locally. Equipment purchased from local manufacturers is given sales tax exemption.

These incentives are for applications received from 28 October 2000 until 31 December 2005. Companies are required to implement their projects within one year from the date of approval of the incentive.

Companies Which Incur Capital Expenditure For Conserving Energy For Own Consumption:

  1. Accelerated Capital Allowance on related equipment to be written-off within a period of 1 year. The incentive is effective from the year of assessment 2003; and
  2. Import duty and sales tax exemption on equipment used in energy conservation which are not produced locally. Equipment purchased from local manufacturers is given sales tax exemption.