METI / ECCJ / ACE Training Program MTPEC06 (2007.01)

5. Supportive System by Government
(for Investment and Technology Development)

The feature of the Japanese supportive system:
It is available for energy end user, i.e.
who purchases a high energy efficiency facilitate / appliance,
not for manufacturers of facilitates / appliances.
(Of cause there are no subsidies for energy prices.)

Because, Energy Conservation should be achieved at
“on-site” where energy is actually consumed.

Supportive Measures (1)

Tax Incentives

…From 1984…

Intended for	Tax incentives
<designated facilities/equipments > ·69 facilities/ equipments(2006Fy)	1. Tax exemption equivalent to 7% of the equipment acquisition cost from the income tax or corporate tax payable (applicable only to small and medium companies from fiscal year 1999) or 2. Special depreciation of up to 30% of the equipment acquisition cost

Basic acquisition cost = (Acquisition cost) x (Multiplier rate (25 to 100%))
Special depreciation: The depreciation is classified as "loss" as defined in the Tax Law, and is included in the calculation of profit in the settlement of accounts (Status regarding the use of tax incentives)

[Status regarding the use of tax incentives]

(Unit: cases)

FY	1984	1998	1999	2000	2001	2002	2003	2004 + 2005
No. of cases	10,544	24,609	19,981	12,177	13,318	11,643	6,412	3,444

Supportive Measures (2)

Subsidy

Many subsidy schemes are handled by NEDO and other organizations

Projects for installation of advanced energy efficiency facilities / systems
<i.e. High-temperature air combustion / Regenerative burner >
Projects for introduction of co- generation systems
Building / extending high heat insulation houses and buildings
Introduction of HEMS, BEMS (ENERGY MANAGEMENT SYSTEM)
Supporting ESCO enterprises
Purchasing low CO² emission auto mobiles
R&D Projects for high energy efficient technologies and systems <others>

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