City of Sendai

Back to top

Sendai City Subsidy Program Guide

Subsidy Targets

New manufacturer offices/factories and facility replacements/additions
Manufacturers are businesses classified under "Division F-manufacturing," within the Japan Standard Industrial Classification

Requirements

100 million yen or more in fixed asset investments
(10 million yen or more in fixed asset investments for small and middle businesses located in Sendai City)
Building and equipment leases can be included in fixed asset investment
(The value of fixed asset investments are calculated by multiplying monthly lease payments by 100 for land, by 70 for buildings, and by 18 for production facilities (depreciable property). For the sake of this calculation, there will be an upper limit on monthly lease payments and production facilities. The maximum monthly lease payment is 500 yen/m2 for land and 5,000 yen/m2 for buildings. The maximum value for production facilities is 3% of the total value of the production facility.)

Subsidies

1. Subsidies for New Offices/Factories
Base subsidy:
70% of fixed asset taxes and other taxes related to new investment
(Businesses in priority fields will receive an extra 20% subsidy; businesses locating in designated areas will receive an extra 10% subsidy)
Subsidy period:
3 years
Maximum limit:
none

*Priority areas

  • High technology industries stipulated in article 44-2, paragraph 1 of the Special Taxation Measures Law
  • Strategic priority fields defined in the New Industry Creation Plan (IT, health and welfare, environment)
  • Growing industries (industries that are expected to achieve large growth through new or advanced manufacturing technology)

*Designated areas
Zones designated for manufacturers within the following areas
1)Izumi Park Town Industrial Park, 2)Izumi Park Town Science Park, 3)Sendai Izumi Intercity, 4)Open Land Behind Sendai Port, 5)Port Area, 6)Matsubara Industrial Park, 7)Minami-Yoshinari Research Par, 8)Asuto Nagamachi

2. Subsidies for Manufacturers that Will Replace/Renew their Facilities
Base subsidy:
50% of fixed asset taxes and other taxes related to new investment(80 % for small and medium businesses located in Sendai)
Subsidy period:
one year
Maximum limit:
10 million yen