100 Tax Allowance Land Use Scheme Cover More Projects
Minister for National Development and Minister-in-charge of Social Services Integration, Desmond Lee, has recently announced the expansion of the Land Intensification Allowance (LIA) scheme to support more facilities. Under the management of the Building and Construction Authority (BCA), the LIA scheme aims to promote the intensification of industrial land use for higher value-added activities.
Currently, the LIA scheme provides support for Integrated Construction and Prefabrication Hubs (ICPHs), which are multi-storey and highly mechanised or automated facilities that produce prefabricated precast concrete components off-site. However, with the expansion of the scheme, it will now include support for construction or additions and alterations (A&A) works in multi-storey Design for Manufacturing and Assembly (DfMA) facilities.
These DfMA facilities offer a different set of services compared to ICPHs, including fit-out works for pre-fabricated modules and storage of prefabricated components. They also manufacture products such as prefabricated mechanical, electrical and plumbing systems, structural steel, mass engineered timber, and three-dimensional concrete printing.
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Through the LIA scheme, companies can receive a tax allowance of up to 100% of the qualifying capital expenditure incurred for building construction or A&A works. The tax rebate is for the corporate tax of the building owner, with an initial 25% tax allowance provided during construction and subsequent annual allowances of 5% until reaching 100% of the qualifying capital expenditure.
To be eligible for the expanded scheme, new multi-storey DfMA facilities (excluding ICPHs) must achieve a minimum gross plot ratio (GPR) of 1.03. Existing facilities that have already met the GPR threshold and plan to use the LIA scheme for A&A works must demonstrate a 10% increase in the building’s GPR. Moreover, at least 80% of the total gross floor area of the qualifying facility must be used by the building owner or its related users.
Companies developing new multi-storey DfMA facilities can apply for the expanded LIA scheme starting from January 1, 2026.