At a glance
Agency
Building and Construction Authority
Instrument
Tax incentive
Allowance
Up to 50% of approved fixed capital expenditure
Minimum investment
S$1m total per application
Minimum equipment item
S$100,000
Productivity test
At least 30% trade-level improvement
Application deadline
30 Jun 2028
What does it support?
IAS supports major investment in new advanced productive construction equipment and systems, such as automated concrete distribution, 3D concrete printing and fleets of construction robots. The equipment must materially improve productivity and be used in Singapore.
Who can apply?
The applicant must be a construction-related business registered in Singapore. The new equipment must be used locally and deliver at least 30% trade-level productivity improvement. The application must involve at least S$1 million total capital investment, with each qualifying equipment item generally costing at least S$100,000.
How does the support work?
The incentive allows up to 50% of approved fixed capital expenditure on qualifying construction equipment and machinery to be offset against taxable income. This is a tax allowance, not a cash reimbursement grant.
What expenditure can qualify?
Qualifying expenditure is approved fixed capital expenditure on new construction equipment and machinery that meets the scheme's productivity and investment thresholds.
Key conditions
The equipment must be new, advanced, used in Singapore and meet the productivity threshold. The applicant must not enter into the relevant contract or make payment for the equipment before application.
Timing and application process
Applications must be submitted by 30 June 2028. BCA states that the scheme remains available until the end of 2028, but the application cut-off is earlier.
Companies should identify the equipment investment, document the baseline and projected productivity improvement, confirm investment thresholds and tax treatment, and apply before contract or payment commitment.
Is this scheme relevant to your project?
A strong fit is a construction-related company making a large capital investment in advanced productivity equipment. A weak fit is ordinary replacement machinery, equipment below the minimum thresholds, or an investment already committed before application.
How Reeve | R&D supports the scheme
Reeve | R&D can manage the incentive workstream - eligibility assessment, project structuring, funding or tax-benefit modelling, application preparation, agency interaction and post-award requirements - while the company remains the formal applicant where required by the programme.
Frequently asked questions
What is the tax benefit?
Up to 50% of approved fixed capital expenditure can be offset against taxable income.
What is the minimum project investment?
S$1 million total capital investment per application.
Is there a minimum equipment value?
Yes. S$100,000 per equipment item.
What productivity improvement is required?
At least 30% at trade level.
Can I order the equipment before applying?
No. The scheme requires application before contract or payment commitment.
Official programme sources
www1.bca.gov.sg (opens in a new tab)Last verified: 2026-10-01