ECCJ Japan Energy Conservation Handbook 2001 4.7 Tax incentives for energy conservation

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4.7 Tax incentives for energy conservation
(1) Tax system for promotion of investment in reformation of energy supply and demand structure
Where a business operator acquires equipment which contributes to efficient energy use and applies it to his/her business within a year, he/she can choose either of the followings: 1) Tax exemption equivalent to 7% of the equipment acquisition cost (which should be not more than 20% of the income tax or corporate tax payable.) 2) Special depreciation of 30% of the equipment acquisition cost in the year of acquisition, in addition to ordinary depreciation. o Energy-conserving equipment Equipment for general industries 120 units Equipment for small and medium enterprises: 64 units * Recognized by the Minister of International Trade and Industry in discussion with the Minister of Finance.
* The equipment acquired based on the activity plans approved based on "Temporary Law concerning the Promotion of Activities for Rationalization in the Use of Energy, etc. and Utilization of Recycled Resources", specified by the government to remarkably contribute to the rationalization of energy use and approved by the Minister of International Trade and Industry (subject to discussion with the Minister of Finance required).
(2) Certification system of specifications for equipment which promotes reform of energy supply and demand