Accelerated Depreciation Allowance for Chemical Hazard Control: About the Scheme

Employers may apply for the Accelerated Depreciation Allowance for Chemical Hazard Control, a tax incentive scheme to recover the costs of implementing the chemical hazard control measures in a one-year period.

The scheme covers for the following* :

1. Machines, equipment or systems that reduce or eliminate exposure to chemical hazards, such as:
   1. Water-based degreasing machine or system;
   2. Automated bagging/packing machine or system;
   3. Automated degreasing machine or system; or
   4. Any other machine, equipment or system:
      • Hydrogen gas generator for cutting and welding metal;
      • Laser marker for marking/labeling electronic components; or
      • Closed-loop dust-free blasting machine;
2. Chemical hazard control devices to supplement any new or existing machine, equipment or process, such as:
   1. Local exhaust ventilation system;
   2. Fugitive emission control equipment or system e.g. vapour recovery system, enclosed pump, floating roof and condensing unit; or
   3. Dilution ventilation system to minimise concentrations of airborne contaminants;
3. Chemical hazard control measures for any existing machine, equipment or process, such as:
   1. Enclosed or automated system to minimise generation of airborne contaminants; or
   2. Modification to minimise generation of airborne contaminants.

* Please note that the above list is not exhaustive and is subject to change.

For more details of the legislation, refer to the Income Tax Act, Chapter 134, Sections 7 and 19(A) at Singapore Statutes Online.