Overview of the Tax Reduction Fund to Countermeasure Deindustrialization

In response to the urgent problem of deindustrialization, Aichi Prefectural Government has announced a new subsidy program aiming at supporting the establishment of manufacturing facilities and promoting research & development and proving tests. This program will be an alternative measure to the reduction of prefectural corporate tax and will be financed by a fund which will accumulate about 5 billion yen every year, corresponding to 10% of the annual amount of corporate tax.

Supporting the establishment of manufacturing or R&D facilities
To support large-scale investments, Aichi Prefectural Government will reform the existing subsidy program to promote the establishment of manufacturing or R&D facilities of cutting-edge industries. With this reform, the government proposes to raise the subsidy limit from 1 billion yen to 10 billion yen. In addition, the government proposes to establish new subsidies aimed at supporting small and medium-scale investments by companies from other Japanese prefectures or overseas, as well as small and medium-scale reinvestments by companies which are already in the prefecture.
Supporting R&Ds and proving tests
In order to maintain and further promote high-value added production in the area, the prefecture will set up a new subsidy targeting R&D and proving tests in expanding industrial fields such as aerospace, which was selected as a target sector for the International Strategy Comprehensive Zone, as well as the next generation vehicles, etc.

*For more information: https://www.pref.aichi.jp/ricchitsusho/e/pdf/overview.pdf

Contact:

■Establishment of manufacturing or R&D facilities

Investment and Trade Division, Department of Industry and Labor, Aichi Prefectural Government
E-mail: ricchitsusho@pref.aichi.lg.jp

■R&D and Proving test

Industry and Science Technology Division, Department of Industry and Labor, Aichi Prefectural Government
E-mail: san-kagi@pref.aichi.lg.jp

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