Overview of the Tax Reduction Fund to Countermeasure Deindustrialization
（Aichi Prefectural Government）
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.
1. 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.
2. 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.
（Establishment of manufacturing or R&D facilities）
Investment and Trade Division, Department of Industry and Labor, Aichi Prefectural Government
Regional Industry Division, Department of Industry and Labor, Aichi Prefectural Government
New Industry Division, Department of Industry and Labor, Aichi Prefectural Government