Taiwan Rolls Out the Red Carpet for AI and Green Investments

On October 4, Taiwan's Ministry of Economic Affairs (MOEA) announced an amendment draft to the Statute for Industrial Innovation, which aims to boost investments in artificial intelligence (AI), energy-saving, and carbon reduction equipment by expanding the scope of applicable projects and increasing the maximum allowable investment expenditures from NT$1 billion to NT$1.8 billion. The move is designed to encourage the industrial sector to accelerate both digital and net-zero transformations.

MOEA emphasized its ongoing efforts to support the smart transformation of industries, aligning with the increasing importance of 5G applications and security protections. Existing incentives for smart machinery, 5G systems, and cybersecurity products or services will remain, with a focus on enhancing smart functionalities to drive high-end intelligent manufacturing.

In response to the rapid evolution of AI technologies, the MOEA is expanding the list of eligible projects, particularly those focused on AI, energy efficiency, and carbon reduction. These measures, coupled with tax incentives, aim to stimulate active industry investment. To accommodate this broader scope, the cap on investment expenditures has been raised to NT$1.8 billion, promoting stronger engagement in AI and energy-efficient technologies. The dual transformation goals—digitalization and net-zero emissions—are a central part of this initiative.

The amended provisions extend the implementation period to December 31, 2029, aligning with other tax incentives outlined in the Statute for Industrial Innovation.