September 7, 2007 (Bernama) — Companies providing energy conservation services will get an additional 10 years pioneer status, Prime Minister Datuk Seri Abdullah Ahmad Badawi said today.Also, the investment tax allowance will be increased to 100 percent of qualifying capital expenditure incurred within five years.
The allowance will be set off against 100 percent of statutory income for each assessment, said Abdullah, who is also Finance Minister, when tabling the 2008 Budget at Dewan Rakyat here today.
Companies which incur capital expenditure for energy conservation for own consumption will have their investment tax allowance increased to 100 percent of the qualifying capital expenditure incurred within five years.
The allowance will be set off against 100 percent of statutory income for each year of assessment.
The proposal is effective for applications received by the Malaysian Industrial Development Authority between tomorrow and Dec 31, 2010.
To encourage companies to invest in greenhouse gases emission reduction projects, in line with efforts to overcome global warming, income derived from trading Certified Emission Reductions (CERs) certificates will have tax exemption, effective from year of assessment 2008 until year of assessment 2010.