Gunma Prefecture's EV (electric vehicle) subsidy became national news in FY2026 (Reiwa 8). The generous prefectural subsidy of 500,000 yen for EVs with large batteries and power-supply functions reached its 200 million yen budget and closed only about one hour after applications opened on May 7. What you can use now are the national CEV subsidy (up to 1.3 million yen for EVs) and municipal subsidies such as Oizumi Town's. Here we walk through what this exceptionally popular prefectural program covered and how to prepare so you do not miss out next fiscal year.
Think of Gunma's EV subsidies as a three-tier structure
CEV subsidy (the main pillar)
A national subsidy available to both individuals and corporations. For FY2026 it offers the largest amounts, such as up to 1.3 million yen for EVs.
The 500,000 yen subsidy ended in one hour
500,000 yen for BEVs with 70 kWh or more and V2H/V2L functions (100,000 yen for others). The budget was reached and applications closed about one hour after opening on May 7, 2026.
Oizumi Town and some others still accepting
Oizumi Town offers 100,000 yen for EVs, 50,000 yen for PHVs, and 50,000 yen for V2H. Maebashi City's household subsidy does not cover EVs.
[National] CEV subsidy for FY2026 (the main pillar)
"Up to 1.3 million yen" is a cap. The subsidy amount is set for each model based on ratings such as the vehicle's environmental performance. Applications close once the budget runs out, and a subsidized vehicle carries a mandatory holding period of four years in principle — selling it within that period may require repaying the subsidy. Check the exact amount for the car you plan to buy in the figures published by the Next Generation Vehicle Promotion Center.
For the full picture of the CEV subsidy and the situation nationwide, see our guide to EV subsidies in all 47 prefectures.
[Gunma Prefecture] The 500,000 yen BEV subsidy ran out "one hour after opening" — what it covered and how to prepare for next year
Gunma Prefecture's "battery electric vehicle (BEV) purchase subsidy" was designed to pay 500,000 yen for BEVs with a battery capacity of 70 kWh or more equipped with V2H/V2L functions (AC 100 V / 1,500 W power supply), and 100,000 yen for other BEVs. It was open to individuals living in the prefecture and to businesses based there, and leases also qualified. The idea was to favor large-battery EVs that can act as mobile storage batteries in a disaster.
However, after applications opened on May 7, 2026, the total budget of 200 million yen was reached in about one hour and applications closed. This rush was even reported by the Nikkei (Nihon Keizai Shimbun). If a similar program appears next fiscal year, it is likely to be a first-day race again, so the realistic preparation is to get quotes for models likely to qualify (70 kWh or more with power-supply functions) and gather the required documents before the end of the fiscal year.
[Municipalities] Oizumi Town is accepting applications; Maebashi City excludes EVs
| Municipality | Status in FY2026 |
|---|---|
| Oizumi Town | 100,000 yen for EVs, 50,000 yen for PHVs, 50,000 yen for V2H, and half the cost of charging equipment (up to 25,000 yen). Individuals living in the town, new vehicles only, and you must apply within 90 days from the month following first registration |
| Maebashi City | Has a zero-carbon subsidy for households, but EVs and V2H are not covered |
Now that the prefectural program has closed, what you can rely on are the national CEV subsidy and whatever municipal budgets remain. Check the status in your municipality by searching for its name together with "EV 補助金" (EV subsidy).
Also check EV "taxes" (automobile tax reductions)
Separately from subsidies, EVs are exempt from the environmental performance levy of the automobile tax (the FY2026 tax reform also decided to abolish this levy altogether), and the following year's automobile tax (by-type levy) is reduced by roughly 75% under the green taxation special measure. For details, see EV taxes and the 2026 automobile tax reform.
Is the subsidy itself taxed?
EV subsidies received by individuals are treated as occasional income (ichiji shotoku). Because a special deduction of 500,000 yen per year applies, no tax arises as long as your occasional income for the year, combined with any other occasional income, is 500,000 yen or less. National and local subsidies combined usually stay within this, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently, so consult a tax accountant or similar professional.
What to do today
What to do today
- Check the national CEV subsidy amount for your candidate models in the Next Generation Vehicle Promotion Center's list (the amount for your specific car, not the "up to 1.3 million yen" cap)
- Search your municipality's official website for its EV subsidy; in Gunma the prefectural program is a first-day race, so check when next year's program will be announced along with remaining budgets and application status
- Work backward from your delivery date to build an application schedule (confirm three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. Can I still apply for Gunma Prefecture's 500,000 yen subsidy?
A. The FY2026 program reached its 200 million yen budget about one hour after applications opened on May 7 and closed. Whether it will run next fiscal year is undecided, but if it does, the realistic approach is to be ready to apply on day one (quotes for qualifying models and documents prepared).
Q. What were the conditions for the 500,000 yen tier?
A. BEVs with a battery capacity of 70 kWh or more equipped with V2H/V2L functions (AC 100 V / 1,500 W power supply). BEVs that did not meet these conditions fell into the 100,000 yen tier. The design favors large-battery EVs that can supply power to a home during a disaster.
Q. If I buy an EV in Gunma now, is any subsidy available?
A. The national CEV subsidy (up to 1.3 million yen for EVs) is available. Among municipalities, Oizumi Town is accepting applications for programs such as 100,000 yen for EVs. Mind the application deadline (within 90 days from the month following registration).
Q. Were leased vehicles eligible?
A. Yes, the prefectural program covered leases too. If a similar program appears next fiscal year, leases will likely qualify again, but always confirm in the official guidelines.
Reference links (sources)
Note: Subsidy amounts, requirements, and application status are as of August 2026. Programs may close early depending on budget consumption. Always check the latest information on each official website before applying.