BCA Investment Allowance Scheme

Singapore's Investment Allowance Scheme (IAS) is a BCA-administered tax incentive for firms investing in productive equipment for construction-related works and construction-related manufacturing facilities. It is an incentive against taxable income based on approved fixed capital expenditure, not a general cash grant or an automatic entitlement (BCA, updated 2 September 2026).

What the allowance covers

An approved applicant may offset up to 50% of approved fixed capital expenditure incurred on qualifying construction equipment and machinery against taxable income. BCA gives automated concrete distribution systems, 3D concrete-printing equipment and fleets of construction robots as examples of potentially eligible investments; the percentage is a maximum and approval is assessed on the application’s merits (BCA, updated 2 September 2026).

The productivity objective is broader than buying a single machine: BCA encourages firms to invest in productive systems and redesign processes so that productivity can improve across multiple tasks. The IAS is therefore tied to the proposed equipment and its demonstrated trade-level effect, rather than being a general deduction for a company’s entire technology budget (BCA, updated 11 September 2026).

The scheme is available until 31 December 2028, and applications must be submitted to BCA by 30 June 2028. These dates describe the published scheme and application window; they do not turn every equipment purchase made before those dates into an approved allowance (BCA, updated 2 September 2026).

Applicant and investment conditions

At the point of application, the applicant must be a construction-related business registered in Singapore. The equipment must be new, use advanced technology, be used in Singapore and offer at least a 30% productivity improvement at trade level. The minimum total capital investment per application is S$1 million, while each equipment item in the application must represent at least S$100,000 of capital investment; multiple items may be combined in one application (BCA, updated 2 September 2026).

Timing and limits

The application must be submitted before contract confirmation and before making a related payment to a supplier, vendor or third party for the equipment. The pre-contract boundary means applicants must apply before contract and before committing the purchase. BCA may request supporting documents, and submission does not guarantee approval. The published thresholds apply to the qualifying capital expenditure and equipment described in the application, not to a firm's entire investment programme or all construction businesses in Singapore (BCA, updated 2 September 2026).

BCA states that an application is processed only after all relevant supporting documents have been received, and directs uncertain applicants to contact BCA before submitting. This makes the enquiry route a clarification channel, not evidence that an applicant has been pre-approved or that a proposed purchase can safely proceed before the formal application (BCA, updated 11 September 2026).