Tax incentive to promote renewable energy and building energy efficiency

To promote the development of renewable energy and use of energy-efficient building installations for a low-carbon future, starting from the 2018-19 financial year, the capital expenditure on these installations can be fully deducted in the first year of purchase.

In order to enjoy the tax incentive for energy-efficient building installations, the building concerned must be registered under the voluntary Energy Efficiency Registration Scheme for Buildings operated by the Electrical and Mechanical Services Department (EMSD). The building should also reach specified standards under a green building certification system, such as BEAM Plus certification. As all the specified standards are above the statutory requirements, buildings that achieved those energy-efficient performance standards may then enjoy the enhanced tax incentive. Details are available at the EMSD's web page:
https://www.emsd.gov.hk/en/energy_efficiency/energy_efficiency_registration_scheme_for_building/index.html.
Renewable energy installations such as solar photovoltaic panels and wind turbines are eligible for the same tax incentive.