Japan provides subsidies for the purchase of clean energy-powered vehicles sold by automakers, as well as for the construction of hydrogen supply stations, according to a report by the World Trade Organization (WTO).

The grant to promote the purchase of clean energy vehicles applies to the purchase of battery-powered electric vehicles, plug-in hybrid electric vehicles, fuel cell vehicles, and clean diesel-powered vehicles.

The amount of the grant depends on the category of vehicle in question and is subject to the limits established for each category (payment is not made if the amount calculated is less than JPY 15,000, about US $ 140).

Clean energy

In 2019, the budget heading for this grant program amounted to JPY 16 million. The maximum amount of the subsidy for the construction of hydrogen supply stations ranges from JPY 180 million to JPY 390 million.

The maximum amount of the subsidy for the operation of hydrogen supply stations ranges from JPY 16 million to JPY 26 million. The application of these limits depends on the type of machinery used.

In addition, there are several local grants aimed at promoting the establishment of subsidiaries of foreign companies. These grants are related, among other things, to rental costs, expenses, depreciable assets, investments, employment, and research costs.

Since 2016, new grant programs have been introduced for manufacturing, the introduction of information and communication technologies and the promotion of sustainability for SMEs (JPY 110 billion item from the 2019 fiscal year budget). In addition, group grants have been awarded (JPY 31.4 billion item from the supplemental budget for the 2018 financial year).