Enhancements To The Land Intensification Allowance Incentive (Budget 2014)

Budget 2014
In the Budget 2014 Statement , the Minister for Finance announced an extension of the Land Intensification Allowance (LIA) Incentive - a scheme to promote the intensification of industrial land use towards more land-efficient and higher value-added activities - for another 5 years from 1 July 2015 to 30 June 2020. In addition, Budget 2014 also introduced the following enhancements to the LIA incentive with effect from 22 February 2014:-

(a) Extension to qualifying building or structure on airport land and port land;
(b) Expansion of qualifying activities to certain logistics activities; and
(c) Introduction of an 10% incremental gross plot ratio (GPR) criterion for existing buildings that have met or exceeded the GPR benchmark

The key qualifying conditions of the LIA incentive before and from 22 February 2014 are summarised in the table below.

 Qualifying conditions of LIA incentive  From 23 February 2010 to 21 February 2014  From 22 February 2014 to 30 June 2020

 Qualifying building or structure
  • Built on industrial B1/B2 land
  • Built on industrial B1/B2 land
  • Built on Airport/Port land
 
Qualifying trade or business
  • Specified manufacturing activities
  • Specified manufacturing activities
  • Specified logistics activities


 Qualifying intensified use of the land

  • Prescribed GPR benchmarks for specified manufacturing activities
  • Prescribed GPR benchmarks for specified manufacturing activities
  • Prescribed GPR benchmarks for logistics activities
  • Incremental 10% GPR applies to buildings or structures which already have met the Prescribed GPR benchmarks.

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