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Vertical expansion of industrial parks

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On April 26, 2019, the Executive Yuan approved a plan to revitalize industrial zones through the vertical expansion of buildings and facilities as a means of assisting enterprises looking to invest in Taiwan overcome the complication of securing suitable space. The plan grants floor-area bonuses as incentives for companies to either add higher levels to existing facilities or tear down older structures to rebuild based on higher floor-area ratios (the ratio between a building's usable floor area and the size of the lot on which the structure stands). The objective is to accelerate industrial renewal, increase the height of facilities to improve land-use efficiency, and make available the additional space required for producers to develop and grow. Creating an environment to attract additional corporate investment and encourage better management of energy resources are also important considerations.

The government is looking for producers to invest in research and development, improve work safety and environmental protections, and replace older equipment in favor of newer technologies. Ultimately, Taiwanese companies overseas will continue to feel the growing pull to return and invest among improving conditions at home.

I. Scope of incentive applicability

A. Any area designated and developed as an industrial zone: The plan covers all industrial zones designated by the competent central and local authorities under the original Statute for the Encouragement of Investment and Statute for Upgrading Industry, as well as the current Statute for Industrial Innovation. Also covered are industrial zones designated for development by public firms, private companies and industrial entrepreneurs.

B. Other government-established zones: These sites include science parks, agricultural technology parks and other designated-purpose zones established and developed by the responsible units in accordance with laws governing the establishment and administration of such sites.

II. Beneficiaries of expanded area-ratio incentives

A. Companies that commit to new investment will be eligible.

B. Also included are enterprises with good-practice energy-use certifications or that use renewable energy (e.g., operators who install rooftop facilities to generate solar power).

C. Companies that donate industrial space to increase opportunities for other operators to establish a presence in industrial zones, or firms that make financial contributions to "feedback funds" managed for the improvement of public spaces or common facilities within and around industrial zones, will also be eligible for the incentives.

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