Page 10 - RSM Budget 2021 Highlights

CORPORATIONS AND BUSINESSES

Investment Allowance (Energy Efficiency) Effective date
Scheme The revised conditions will apply to projects
approved by EDB from 1 April 2021 to 31 December
Current
2026.
The Investment Allowance (Energy Efficiency) (“IA-
EE”) scheme provides for investment allowance for
energy efficiency improvement projects, subject to Comments
conditions.  The Government is fully committed to do its part
for the world on the green movement project.
Data Centres are subject to additional qualifying
conditions under the IA-EE scheme, such as the With the proposed changes, it would be even
following: more attractive for businesses to invest in clean
 Be compliant with the Singapore Standard for energy and carbon efficiency equipment to
Green Data Centres (SS564:2010); and combat global climate change.

 Have a minimum capacity of 400m (floor  We will stay tuned to the updated eligibility
2
space). conditions that could encourage businesses to
improve green energy efficiency through new
The conditions above apply to energy efficiency and advanced technology.
improvement projects approved by EDB on or before
31 March 2021.

Proposed changes
The IA-EE scheme will be renamed the “Investment
Allowance for Emissions Reduction” scheme, with
the following revisions:

 Expansion in the scope of qualifying projects to
include projects involving a reduction of
greenhouse gas emissions; and

 Streamlined and updated eligibility conditions.
These will apply to all projects (i.e. there will no
longer be a distinction between data centres
and non-data centres).

The revised conditions will apply to projects
approved by EDB from 1 April 2021 to 31 December
2026 (both dates inclusive).

EDB will release further details of the changes by 30
June 2021.

BUDGET 2021 HIGHLIGHTS | 9