| Accelerated depreciation allowance
will be granted to any person carrying on a trade, profession
or business for capital expenditure on two categories
of energy equipment:
-
Replacements for machines and
equipment which consume large amounts of energy.
The objective is to encourage enterprise to undertake
more frequent changes of major energy utilising
machines in order that old and energy wasteful machines
could be replaced by new energy efficient machines
-
Specialised energy-saving and
energy-efficient equipment and devices which reduce
the usage of energy. The objective is to induce
enterprise to invest in these specialised equipment
and devices.
Any person carrying on a trade, profession
or business can qualify for this accelerated depreciation
allowance.
Under this scheme, the accelerated
depreciation allowance will be for a period of one year
which means capital expenditure on the specified energy
equipment can be expensed off in one year.
Category A
Criteria for Granting Accelerated Depreciation
Allowance to Replacement Machines and Equipment
The machine or equipment will have
to be in the List of Approved Replacement Machines and
Equipment.
A professional engineer (PE) will have
to certify that energy will be saved by installing the
replacement machine or equipment.
List of Approved Replacement Machines
and Equipment
- Air-conditioning Systems
- Boilers
- Water Pumping Systems
- Washing/Dry-cleaning Machine Systems
- Refrigeration Systems
- Lifts and Escalators
- Instant Hot Water Systems
This list may be modified or updated from time to time.
Criteria for Granting Accelerated Depreciation
Allowance to Energy-saving Equipment and Devices
The equipment or device will have to
be in the List of Approved Energy-saving Equipment and
Devices.
A certification of the equipment or
device by SISIR is required.
List of Approved Energy-saving Equipment
and Devices
- Solar Heating and Cooling Systems
- Solar Energy Collection systems
- Heat Recovery Systems
- Power Factor Controllers
- High Efficiency Electric Motors
- Variable Speed Drive Motor Control Systems
- High Frequency Lighting Systems
- Computerised Energy Management Systems
- Energy-saving Devices of the Approved Type
This list may be modified or updated
from time to time. |
