Investment Tax Credit for Clean Equipment Doubled... 10% for SMEs

Sung Yun-mo, Minister of Trade, Industry and Energy./Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Chaeseok] The government is doubling the scope of tax credit benefits for investments in clean production facilities by manufacturers. This is to encourage companies to voluntarily invest in eco-friendly production facilities.

On the 11th, the Ministry of Trade, Industry and Energy announced that starting from the 12th, the number of clean production facilities eligible for investment tax credits will be expanded and officially announced from 74 facilities (12 industries) to 139 facilities (16 industries).

The newly added clean production facilities eligible for investment tax credits will receive tax credits ranging from 3% to 10% of the investment amount, depending on the company size. Small and medium enterprises receive a 10% credit, mid-sized companies 5%, and large corporations 3%.

Clean production facilities are devices that reduce raw materials and energy input in the production process, as well as waste generated after production.

The Ministry of Trade, Industry and Energy stated that after revising the announcement, 20 new facilities in 4 industries including semiconductors and cement were newly added to the tax credit targets. These include eco-friendly semiconductor manufacturing equipment and energy-saving facilities.

In the existing 12 industries such as automobiles, steel, and petrochemicals, 45 additional facilities were added. The main additional facilities include energy-saving equipment, waste and wastewater reduction facilities, hazardous substance usage reduction equipment, and air pollutant emission reduction equipment.

An official from the Ministry said, "We hope this will serve as an opportunity for companies to voluntarily expand investments to make manufacturing more eco-friendly by reducing fine dust, greenhouse gases, and pollutants."

This content was produced with the assistance of AI translation services.