Preferential treatment system (2010 From April)

Subsidies for Promotion of Strategic Enterprises(2011 to 2012)

Specified Requirements Eligible Costs Subsidization Rate Maximum Subsidy
Target Enterprises New establishments, etc. Initial investment (excl. land purchase and development cost) Number of local residents newly hired as regular employees at start of operations *1 General Range Regional Vitalization Framework *2
Facility Subsidy *3 (1)Manufacturing factories and research laboratories for Environment and new energy-related industries, Commerce and Agriculture-related industry cooperation, transportation machinery, semiconductor-related industries
(2)Industries designated agglomeration industries in the Basic Plan agreed upon by the national government based on the Enterprise Location Promotion Law
(3)Enterprises specially approved by the governor		 New/
additional establishments		 500 million yen or more (100 million yen or more in the case of regional vitalization framework) 20 employees or more (5 or more in the case of regional vitalization framework) Fixed assets invested (excl. land purchase and development cost) 5% 10% 100 million yen
4 billion yen or more (2 billion yen or more in the case of regional vitalization framework) 50 employees or more (25 or more in the case of regional vitalization framework) 2.5% 5% 3.5 billion yen
Over 40 billion yen (20 billion yen or more in the case of regional vitalization framework) 1.5％
(Subsidization rate for costs exceeding 40 billion yen)		 3.0％
(Subsidization rate for costs exceeding 20 billion yen)
Employment Encouragement
*3		 New/
additional establishments		   Over 10 employees (over 5 in the case of regional vitalization framework) Over 10 employees (over 5 in the case of regional vitalization framework) 600,000 yen per employee for employees exceeding 10 1.2 million yen per employee for employees exceeding 5 100 million yen
For laboratories, 3 or more research employees Applies to one or more research workers at a research facility 1.2 million yen per research employee at a research facility

Information Industry
*3

Companies recognized as a data center or similar business.

500 million yen or more

3 employees or more

Fixed assets invested (excl land purchase and deveropment cost)

 2.5%

50 million yen

*1 Persons living in the prefecture who are newly employed without fixed terms by a new or expanded enterprise.

*2 The target of the regional vitalization framework is establishment of new enterprises and expansion of existing enterprises in peripheral regions, under populated areas, semi-under populated areas, and special heavy snowfall areas (limited to cities, towns, and villages in areas with independent preferential systems), or new or additional establishments in Aizu-wakamatsu City. The target period of the regional vitalization framework in Aizu-wakamatsu City is three years.

*3 Not permitted for use in combination of supporting facility, promoting employment and information industry.

Fukushima Prefecture Enterprise Location Fund Loan System

Applicable Enterprises
  1. Enterprises establishing new business at sites suitable for factories, industrial parks, or agri-industrial sites in Fukushima Prefecture, and those expanding or relocating existing facilities to such sites.
  2. Enterprises dealing in the following activities.
    A. Manufacturing, road fright transport, warehouse, packing, and wholesale business.
    B. Any of the 16 designated businesses types.
  3. In principle, priority shall be given to small and medium-sized enterprises, as prescribed by the Small and Medium Enterprise Law, Article 2.
  4. In principle, eligible enterprises will hire five or more new employees, and will guarantee that 20% of said employees shall be residents of Power generation areas(52 cities, towns, and villages in the prefecture).
Applicable Expenses
  1. Acquisition cost of machinery and equipment
  2. Factory and other facility costs (including construction)
  3. Land acquisition and development costs
Terms and Conditions
  1. Financing period : 15 years or less (2 years grace period included)
  2. Interest rate : Fixed rate of 1.9% annually or variable rate of 1.2% (reviewed twice yearly)
    *interest rates as of March 2010
  3. Financing limit : 500 million yen per enterprise (1 billion yen with approved by the prefectural governor)
    *Limited to 70% of total applicable business expenses.
Financial institutions Commercial banks having offices in the prefecture, the Central Bank for Commercial and industrial Cooperatives, or shinkin banks in the prefecture.

◇Industry-supporting service providers (16 designated business types)

Loan program for Regional General Plant and Equipment Fund (Furusato Loan)

Outline Interest-free loans provided by the prefecture or municipality to support private business activities that contribute to regional revitalization.
Applicable expenditure Expenses for Plant and Equipment Investment
Main requirements
  1. Must benefit the public and be commercially profitable.
  2. Applicable expenses must be over 25 million yen.
  3. Must hire new employees {more than 10 people (more than 5 people for municipalities)}.
Loan amount Under 20% of the total amount borrowed for applicable expenses (Maximum limit :- prefectural loan : 2.4 billion yen, municipal loan : 600 million yen) ( the maximum limit for regions approved for regional revitalization, or designated as depopulated areas etc. have been raised)

Preferential Tax Measure

Name of Ordinance Target Areas Requirements for Target Bodies Business Tax Fixed Asset Tax Real Estate Acquisition Tax
Fukushima Prefecture Special Tax Treatment Ordinance Under populated areas The sum value of acquired industrial plant and equipment should exceed 27 million yen. ･ 3 years
･ exemption from taxation		 ･ 3 years
･ exemption from taxation		 ･ Date of acquisition
･ exemption from taxation
Power plant location areas The sum value of acquired industrial plant and equipment should exceed 27 million yen. ･ 3 years
･ uneven taxation		 ･ 3 years
･ uneven taxation		 ･ Date of acquisition
･ Taxation on a differential basis
Agglomeration areas based on the Enterprise Location Promotion Law. The manufacturing industry (except industries related to agriculture, forestry and fisheries) should exceed 200 million yen. -- -- ･ Date of acquisition
･ exemption from taxation
The manufacturing industry (Industries related to agriculture, forestry and fisheries) should exceed 50 million yen. -- -- ･ Date of acquisition
･ exemption from taxation

Tax incentives and Other Subsidies

Subsidy for promotion of enterprise location near nuclear power plants in Fukushima Prefecture
  • Description:
For the purpose of promoting areas near nuclear power plants in Fukushima Prefecture, enterprises that are located in the relevant areas and that sign up for electric power service are eligible for grants applicable against electricity charges paid.
Primary requirements: Increase in consumption of electricity through new contracts or the addition of new facilities.
Applicable areas (designated areas): Cities, towns, and villages located nearby nuclear power facilities or nuclear material recycling facilities.
Subsidization: Approximately half of electricity charges subsidized for a maximum of eight years.