Automotive Investment Scheme (AIS)
AIS is an incentive designed to grow and develop the automotive sector through investment in new and/or replacement models and components that will increase plant production volumes, sustain employment and/or strengthen the automotive value chain.
The AIS provides for a non-taxable cash grant of 20% of the value of qualifying investment in productive assets by light motor vehicle manufactures and 25% of the value of qualifying investment in productive assets by component manufacturers and tooling companies. An additional non-taxable cash grant of between 5 to 10% may be available to projects that are found to be strategic. The project must be undertaken by a manufacturer of specified light motor vehicles that is registered with the International Trade Administration Commission (ITAC). The project in order to qualify for the additional non-taxable cash grant must (among others) spend at least 5% of the value of the investment project on Research and Development (R&D). R&D activities should be scientific and/or technological, systematic, investigative or experimental with the results unknown and must be discovered, aimed at non-obvious scientific or technological knowledge, or creating an invention or design or knowledge, conducted to produce a new or improved function, performance, reliability and quality and be innovative.
New or replacement models and components that will increase plant production volumes, sustain employment and/or strengthen the automotive value chain.
Projects will be evaluated on the following economic benefit requirements; investment in a new and/or replacement model, tooling, value-addition, employment creation/retention, strengthening of the automotive supply chain, empowerment, increase in plant production volumes by light motor vehicle manufacturers and increase in unit production per plant by component manufacturers.
To apply visit the dti website, and locate the financial assistance tab. All information including application forms and guidelines is provided for in each of the dti funding and/or incentives.