Automotive

Automotive Investment Scheme

The Automotive Investment Scheme (AIS) is an investment based, cash incentive, available to light motor vehicle automotive component manufacturers or tooling manufacturers and light motor vehicle manufacturers. Qualifying costs against which incentive benefits may be claimed include:

both used and new plant, equipment and tooling
improvements and additions to owned buildings.

In addition to these capitalised costs, the following costs related to competitiveness improvement may also be incentivised:

Process improvements
Conformity assessments
Product improvements
Skills development Resource efficiency
Information technology systems.

Qualifying costs may be incentivised at 20% to 35%. Application is required to be submitted at least 120 days (Motor Vehicle Manufacturers) and 90 days (Component Manufacturers) prior to the commissioning of the qualifying investment.

Medium and Heavy Commercial Vehicle Automotive Investment Scheme

The Medium and Heavy Commercial Vehicle Automotive Investment Scheme (MHCV-AIS) is a subcomponent of the Automotive Investment Scheme and provides for an investment based tax free cash incentive.

The incentive programme is available to manufacturers of trucks, bus chassis, truck and bus bodies together with component manufacturers supplying these industries. Qualifying costs against which incentive benefits may be claimed include:

newly acquired buildings
new and / or second-hand, refurbished and upgraded plant, machinery and tooling.

Component manufacturers may also qualify for Competitiveness Improvement Costs where these costs may include:

process improvements
product improvements
quality standards
skills development and information technology systems.

Manufacturers of medium and heavy commercial vehicles may qualify for a non-taxable cash grant of between 20% and 30% while component manufacturers and tooling manufacturers may qualify for a non-taxable cash grant of between 25% and 35%. Application is required to be submitted at least 120 days (Heavy Commercial Motor Vehicle Manufacturers) and 90 days (Component Manufacturers and tooling manufacturers) prior to the commissioning of the qualifying investment.

People-carrier Automotive Incentive Scheme

The People-carrier Automotive Incentive Scheme (P-AIS) is a subcomponent of the Automotive Investment Scheme and provides for an investment based tax free cash incentive.

The incentive programme is available to manufacturers of people carrier vehicles with carrying capacities of 10 to 35 persons and a vehicle mass exceeding 2000 kg. Component manufacturers and tooling manufacturers supplying the heavy commercial vehicle manufacturer supply chain locally and internationally may qualify for the P-AIS. Qualifying costs against which incentive benefits may be claimed include:

owned buildings and/or improvements to owned buildings
new and/or second-hand, refurbished and upgraded plant, machinery and tooling.

Component and tooling manufacturers may also qualify for Competitiveness Improvement Costs where these costs may include:

process improvements
product improvements
quality standards
skills development and
energy efficiency improvements.

Qualifying manufacturers may qualify for a non-taxable cash grant of between 20% and 35% of the qualifying investment made. Application is required to be submitted at least 120 days (People Carrier Manufacturers) and 90 days (Component Manufacturers and tooling manufacturers) prior to the commissioning of the qualifying investment.

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