When you buy an EV in Fukui Prefecture, you can receive the prefecture's own subsidy on top of the nationwide national subsidy. The national CEV subsidy is up to ¥1.3 million for an EV. Fukui Prefecture's "Next-Generation Vehicle Adoption Promotion Project Subsidy" (FY Reiwa 8) is added on top of this: for all ages, ¥100,000 for an EV/PHV and ¥500,000 for an FCV; and for those aged 18–29, a Youth Discount of ¥400,000 for a standard EV and ¥250,000 for a light (kei) EV is available (with an additional amount for the Reinan region). We organize the conditions, the application period, and even the taxation of the subsidy you receive.
- National CEV subsidy: nationwide, up to ¥1.3 million for an EV (light EV ¥580,000, PHEV ¥850,000)[Ministry of Economy, Trade and Industry].
- Fukui Prefecture (FY Reiwa 8): for all ages, ¥100,000 for an EV/PHV and ¥500,000 for an FCV (¥200,000 / ¥600,000 in the Reinan region). The Youth Discount for those aged 18–29 is ¥400,000 for a standard EV and ¥250,000 for a light EV (¥500,000 / ¥350,000 in Reinan). Cannot be combined; choose one or the other[Fukui Prefecture].
- Application period: April 17, Reiwa 8 to March 31, Reiwa 9 (must arrive by then). Acceptance ends when the budget cap is reached.
- Taxation: a personal private car is occasional income. However, by using a special provision on your tax return you can make it tax-free (explained in the article)[National Tax Agency].
Amounts of Fukui Prefecture's "Next-Generation Vehicle Adoption Promotion Project Subsidy"
Fukui Prefecture's FY Reiwa 8 subsidy has two menus, "for all ages" and the "Youth Discount," and you choose one of the two (cannot be combined)[Fukui Prefecture].
| Menu / vehicle type | Within the prefecture (all areas) | Reinan region |
|---|---|---|
| All ages: EV | ¥100,000 | ¥200,000 |
| All ages: PHV | ¥100,000 | ¥200,000 |
| All ages: FCV | ¥500,000 | ¥600,000 |
| Youth Discount (ages 18–29): standard EV | ¥400,000 | ¥500,000 |
| Youth Discount (ages 18–29): light EV | ¥250,000 | ¥350,000 |
The Youth Discount is for an individual who, at the time of the vehicle purchase contract, is aged 18 to 29 and has an address within Fukui Prefecture (and for a leasing operator that leases to such a person). The Reinan region is the southern area of Fukui Prefecture and is eligible for the additional amount. Please check Fukui Prefecture's official page for the latest eligible areas and amounts.
Eligibility and conditions
- Eligible persons: individuals, sole proprietors, corporations, etc. with an address within the prefecture (the Youth Discount is for individuals aged 18–29). Lease users are also eligible.
- Eligible vehicles / requirements: an EV, PHV, or FCV that has received a grant decision for the national (METI) CEV subsidy and was first registered on or after April 1, Reiwa 8. The location of the base of use and the owner's address must be within Fukui Prefecture, and it must be for private use.
Application period and procedure
- Receive a grant decision for the national CEV subsidy (being an eligible vehicle is the prefecture's prerequisite. Because some systems exclude orders/registrations made before the grant decision, confirm the order of procedures before purchasing)
- Register the vehicle for the first time (on or after April 1, Reiwa 8)
- Apply from Fukui Prefecture's official page (application period: April 17, Reiwa 8 to March 31, Reiwa 9, must arrive by then. Review takes time, so apply early)
* Acceptance ends at the point the budget cap is reached. You can check the acceptance status on Fukui Prefecture's official page.
How much do you get with national + prefectural?
The national subsidy is set individually by vehicle type and performance, so it is not a flat amount, but combined with Fukui Prefecture's add-on the picture is as follows (amounts are a guide).
- Standard EV: national up to ¥1.3 million + prefectural Youth Discount ¥400,000 = up to ¥1.7 million
- Light EV: national up to ¥580,000 + prefectural Youth Discount ¥250,000 = up to ¥830,000
- * The national amount is a guide to the cap set individually for each vehicle type. Because the total exceeds the ¥500,000 special deduction, be sure to check the tax treatment (next section).
With the all-ages menu, an EV/PHV gets a prefectural add-on of ¥100,000 (¥200,000 in Reinan). The national subsidy is also explained in our Guide to EV subsidies in the 47 prefectures.
Taxation of the subsidy you receive
An EV subsidy can be subject to tax once you receive it. The treatment changes depending on the use.
- A personal private car: in principle it is occasional income, and the taxable amount is half of what remains after subtracting the ¥500,000 special deduction from your total occasional income for the year[National Tax Agency No.1490]. However, if you attach the "statement on the exclusion of national treasury subsidies, etc. from total revenue" when you file your tax return, the subsidy applied to the vehicle purchase can be excluded from total revenue and made tax-free (Article 42 of the Income Tax Act. National and local government EV subsidies are eligible. Note that there is no similar system for residence tax). Those whose total exceeds ¥500,000 with the Youth Discount should consider using this special provision.
- Business use: a sole proprietor records it as miscellaneous income in business income, and a corporation records it as gross revenue (gain). By using compressed entry / reserve for reduction (blue-return filers and corporations), you can record the acquisition cost of the vehicle bought with the subsidy after deducting the subsidy amount, which curbs taxation in the year received[National Tax Agency No.5765].
For whether filing is required, see Filing a tax return for a side business; for expensing business vehicles, please also check 10 gray-area items on whether something is a business expense.
FAQ
If I buy an EV in Fukui Prefecture, can I receive subsidies from both the national and prefectural governments?
Yes. The national CEV subsidy (nationwide, up to ¥1.3 million for an EV) and Fukui Prefecture's Next-Generation Vehicle Adoption Promotion Project Subsidy are separate systems and can be combined. The prefecture provides, for all ages, ¥100,000 for an EV/PHV and ¥500,000 for an FCV; the Reinan region gets an additional amount; and those aged 18–29 get the Youth Discount of ¥400,000 for a standard EV and ¥250,000 for a light EV. Acceptance ends when the budget cap is reached.
Who is eligible for the Youth Discount? Can I use it together with the all-ages menu?
It is for an individual who, at the time of the purchase contract, is aged 18 to 29 and has an address within Fukui Prefecture. It is ¥400,000 for a standard EV and ¥250,000 for a light EV (¥500,000 and ¥350,000 respectively in the Reinan region). It cannot be combined with the all-ages menu; you choose one of the two.
Is tax charged on the subsidy?
A personal private car is in principle occasional income, but if you attach the "statement on the exclusion of national treasury subsidies, etc. from total revenue" when filing your tax return, the subsidy applied to the vehicle purchase can be made tax-free (Article 42 of the Income Tax Act). If the national + prefectural total exceeds the ¥500,000 special deduction, consider using this special provision. Business use is recorded as miscellaneous income / gross revenue, and taxation can be deferred with compressed entry.
Until when can I apply?
For FY Reiwa 8, the application period is from April 17, Reiwa 8 to March 31, Reiwa 9 (must arrive by then). However, because acceptance ends once the total application amount reaches the budget cap, it is safest to proceed with your purchase and application early. Please check the latest acceptance status on Fukui Prefecture's official page.
Reference links (sources)
- Fukui Prefecture's subsidy (Next-Generation Vehicle Adoption Promotion Project Subsidy, FY Reiwa 8): Fukui Prefecture — Next-Generation Vehicle Adoption Promotion Project Subsidy (in Japanese)
- National CEV subsidy (FY Reiwa 7 supplementary; EV up to ¥1.3 million, etc.): Ministry of Economy, Trade and Industry (in Japanese) / eligible vehicle types and subsidy amounts: Next Generation Vehicle Promotion Center (in Japanese)
- Taxation of the subsidy: National Tax Agency No.1490 Occasional income (in Japanese) / National Tax Agency No.5765 Compressed entry for subsidies, etc. (in Japanese) / exclusion of national treasury subsidies, etc. from total revenue (Article 42 of the Income Tax Act)
* Fukui Prefecture's subsidy changes in amount, requirements, eligible areas, deadline, and budget each fiscal year. This article is general information; please confirm the final amount and the latest acceptance status on Fukui Prefecture's official page. For individual tax judgments, consult a tax office or a tax accountant.