Fukushima Pref ecture

Favorable Treatment System

The National Subsidy for the Corporate Location Giving Job Creation in the Area Damaged by Tsunami and Nuclear Power

Purpose and outlines This is aimed at promoting the industrial revival of Fukushima, mainly the stricken area damaged seriously by tsunami and nuclear power accidents where the evacuation order has been lifted, by performing job creation and regional economic activation.

◇The requirements of employment

The sum of fixed asset investment The number of newly-employed locals
Fifty thousand yen and more three and more
1 hundred million yen and more 5 and more
1 billion yen and more 10 and more
2 billion yen and more 20 and more
3 billion yen and more 30 and more
4 bullions yen and more 40 and more
5 billion yen and more 50 and more
6 billion yen and more 60 and more
7 billion yen and more 70 and more
8 billion yen and more 80 and more
9 billion yen and more 90 and more
10 billion yen and more 1 hundred and more
The requirements of the subside Applicable facilities Facilities of the concerned service industry including factories, distribution facilities, test and research facilities, and call center
Applicable expenses Initial investment expenses (limited to the concerned use)
Expenses of acquisition of sites (rental cost is excluded), buildings, and machineries
Expenses of related work of the above
The requirements of grant
  • You must employ certain of new locals according to your fixed asset investment as listed right.
  • A plan to invest only in facilities is not covered.
  • A business plan published before January 29, 2013 (the day of decision of the year’s national budget) is also not covered.
The rates of aid & the maximum 1. in area damaged by nuclear power  
●Big business…one half
●Small and medium-sized business…two thirds
In the area where the evacuation order or alert has been lifted
* In the area where the evacuation order or alert has been lifted, the aid rate for 1 year after the cancellation is below.
●Big business…two thirds
●Small and medium-sized business…three fourths
<Maximum>
In one case a screening committee highly estimated, the maximum is 5 billion yen.
In the others case, the maximum is 3 billion yen.

2. in the area damaged by tsunami  
●Big business…one third
●Small and medium-sized business…one half
<Maximum>
In one case a screening committee highly estimated, the maximum is 5 billion yen.
In the others case, the maximum is 3 billion yen.

3. in the area except 1&2
●Big business…quarter
●Small and medium-sized business…one third
<Maximum>
The maximum is 3 billion yen.
A note You need to complete the location project by the end of March, 2018.

◇A division chart according to the rates of aid


For details, please contact the following address.
●Mizuho Information Research Co. social policy consulting department
03-5289-7204
From 10a.m. to 12p.m. and from 1p.m. to 5p.m.
Saturday, Sunday, and national holidays are the exceptions.

Fukushima Special Area for Industrial Reconstruction and Investment Promotion

Purpose This is aimed at promoting the increase of companies in the manufacturing industry and job creation for the reconstruction from the Great East Japan Earthquake, by applying favorable tax system.
Applicable business The concerned business running in the Reconstruction Industry Aggregate Area.
About the Aggregate Area In Fukushima 59 industrial parks or industrial areas are selected as the Reconstruction Industry Aggregate Area.
Applicable 7 types of industry 1. Transport equipment related industry
2. Electronic equipment related industry
3. Information and telecommunications industry
4. Medical related industry
5. Renewable energy related industry
6. Food and drink related industry
7. Local resources related industry
Favorable tax system 1. New location promotion tax system (act, article 40)
The corporation tax of a corporation newly established location is essentially free for five years.
2. Special depreciation for corporate equipment (act, article 37)
Special depreciation and tax used for investment of the equipment, device, or buildings are subtracted.
3. Special subtraction of the corporation tax (act, article 38)
The amount of tax as much as 10% of the total provision for employees’ salaries suffered from the earthquake is subtracted.
4. A special exemption law of tax system of research and development (act, article 39)
The depreciation assets for research and development can be repaid immediately.
Moreover, the 12% amount of tax is subtracted.
5. Subtraction of the local tax or heterogeneous taxation (act, article 43)
The enterprise tax, the real estate acquisition tax, and fixed assets tax for an additional building and equipment are exemption from taxation or subject of Non-uniform taxation.
Procedure

For details, please call the Chamber of Commerce and Industry of Fukushima prefecture corporate location department.
TEL: 024-521-7882
**You need to be designated by municipality by 31 March, 2017.

The Loan System of Funds of Corporate Location by Fukushima Prefecture

The format of the loan system(※Word : 69KB)

Requirements of corporations subject to financing 1. The corporations that will locate newly or move in an industrial park in Fukushima.
2. The ones that run the following business.
A. The manufacturing industry, the road transport industry, the warehousing industry, the packing business, the wholesale business
B. Specific 16 kinds of business
3. As a rule, small and medium-sized companies provided in the Fundamental Act of Small Business are given priority first.
4. To obtain the loan, companies need to plan to employ new 5 employees and 20% of them are the locals living in Power Supply Region.
51 municipalities of Fukushima come under The Power Supply Regions.
Requirements of expenses subject to financing 1. The cost of acquisition of machineries and equipment
2. The cost of construction of factories
3. The cost of acquisition and development of industrial sites
Requirements of financing 1. Finance period:within 15 years including a period of deferment of 2 years.
2. A rate of interest:fixed (1.9% per year) or fluctuant (1.2% per year). In a fluctuant system, the interest is reexamined twice a year.
*Interest is the figures for March, 2014.
3. The maximum:5 hundred million yen per a corporation (or 1 billion yen when the governor of Fukushima considers it is especially necessary.)
*The maximum is limited to less than 70% of expenses subject to financing.
A financial institution As a rule, you have to choose the bank which has a head office or a branch in Fukushima. And you can also choose The Commercial and Industrial Partnerships Central Bank, Fukushima Credit Association, or Fukushima Credit Union.

◇The business-supporting service industry (Specific 16 kinds of business)

The loan system of regional improvement (“Hometown-loan”)

Outlines Prefecture or municipality can finance you for free of interest for private enterprises that contribute to local development.
Applicable expenses The cost of capital investment
Applicable object Private enterprises and corporations including the third sector
Main requirements 1. It has utility and moderate profitability
2. Expenses subject to financing should be more than 25 million yen.
3. More than 10 people should be newly hired for prefecture financing.
More than 5 people for municipality financing.
Loan amount 45% and less of the expenses subject to financing subtracted subsidies amount
(The prefecture loan maximum:67.5 hundred million yen)
(The municipality loan maximum:16.8 hundred million yen)
In the areas attacked by The Great East Earthquake, the maximum is lifted up until March 31, 2021.
The term of redemption 15 years concluding 5 years of free ride period
Measure of redemption Equal semiannual payments with interest
Security for loan Joint liability on guarantee by a private financial institution is needed, and you must pay warranty fee.
For details, please call the Fukushima prefecture local policy department.
TEL: 024-521-7119
http://www.pref.fukushima.lg.jp/sec/11025a/furusato.html


Fukushima Subsidies for the Promotion of Corporate Location of Information and Communication Technology Companies

Purpose Through gathering ICT companies it aimed at the creation of new industry, job creation for locals, and the increase of nonresident population.
Applicable companies One-man business or corporations which are to establish newly the following office in Fukushima prefecture
●Offices related to the software industry, data processing industry, or service providing industry
●Offices used for production of digital contents and related to the image information production industry, the sound information production industry, the publishing business, or the advertising agency
District The whole of Fukushima prefecture
Applicable expenses Working expenses of offices including correspondence expenses, ground rental cost, or building rental cost
The requirements of grant To employ more than 5 locals newly
To have possibility to continue running the company for more than 5 years
The rates of aid & the maximum The rates of aid
1st year…one half
2nd year…one third
3rd year…quarter
The maximum
2.2 million yen, and the longest term is 3 years
For details, please call the Chamber of Commerce and Industry of Fukushima prefecture corporate location department.
TEL: 024-521-7916


※Municipality divisions are the ones for 31 March, 2014.

Favorable tax system

This information is the one for April 1, 2014.
The name of local ordinance The applicable region Requirements Enterprise tax Fixed assets tax *1 Fixed assets tax
Fukushima Prefecture Special Measures Ordinance on Tax Underpopulated areas(areas marked The cost of acquisition of equipment is more than 27 million yen No-taxation for 3 years No-taxation for 3 years No-taxation at the time of acquisition
The area has nuclear power generation facilities(areas marked The cost of acquisition of equipment is more than 27 million yen Non-uniform taxation for 3 years Non-uniform taxation for 3 years Non-uniform taxation for 3 years
Aggregate area of Corporate Location Promotion Act The manufacturing industry (except agricultural forestry and fisheries)
More than 2 hundred million yen
No-taxation at the time of acquisition
Agricultural forestry and fisheries industry
More than 2 hundred million yen
No-taxation at the time of acquisition
An ordinance of tax exemption of Fukushima Industrial Reconstruction Aggregate Area Industrial Reconstruction Aggregate Area Designated companies or corporations which contributing to job creation in Industrial Reconstruction Aggregate Area No-taxation for 5 years No-taxation for 5 years No-taxation at the time of acquisition
An ordinance of tax exemption of Fukushima Industrial Location Promotion Area and the area where the evacuation order has been lifted Corporate Location Promotion Area *2 New companies acknowledged as a revival and reconstruction project member No-taxation for 5 years No-taxation for 5 years No-taxation at the time of acquisition
Areas where evacuation order lifted *2 The companies which acknowledged as the existing ones in the area have evacuation order on 11 March, 2011.
*2 Applicable municipalities:Tamura City, Minami-Souma City, Tomioka Town, Okuma Town, Futaba Town, Namie Town, a part of IIdate Village, Hirono Town, Naraha Town, Kawauchi Village.
*1 Each municipality has provided ordinances of some favorable treatment system, so please inquire the revenue department as to the fixed assets tax.
For details, please call each Regional Development Bureau of prefecture tax department.

Other subsidies

Subside of corporate location of local companies around the Fukushima nuclear power generation facility

  • Outlines:For the revival of the area around the Fukushima nuclear power generation facility, companies which will enter into a new power contract or build additional contract can get aid as much as the electricity charges companies actually paid.
  • Applicable area:Municipalities which built or are to build nuclear power generation facility and also designated as a Power Supply Area.
  • Main requirements:The increase of power contract and the increase of employees more than 3 with establishment of new enterprise offices.
  • The amount of subside:A part of the electricity charges, the longest term is 8 years.

For details, please call the Chamber of Commerce and Industry of Fukushima prefecture corporate location department.
TEL: 024-521-7280