Prime Minister Takaichi (高市) explained the significance of legislation expanding tax support for strategic fields including AI and quantum technology, and outlined a policy of making Japan a New Technology Nation. She said the government would proceed with measures including a major strengthening of R&D tax incentives, the establishment of a tax regime to promote domestic investment, certification beginning in FY2027 and accelerated regulatory reform.
Prime Minister Takaichi (高市) presented the amended Act on Strengthening Industrial Technology, which fundamentally expands support for strategic technologies such as AI and quantum technology, and said Japan had entered an era in which it must advance technology and its social implementation simultaneously to compete in the global race for massive investment. She identified promoting the social implementation of basic science achievements as a central pillar of the amendments and emphasized strengthening R&D tax incentives.
A new system will allow companies working in strategic technology fields to claim tax credits of up to 50% of their R&D expenses, with certification scheduled to begin in FY2027. The government also plans to strengthen information-sharing mechanisms within the government to accelerate regulatory reform and speed the social implementation of AI and quantum technology.
Prime Minister Takaichi (高市) also said the government was considering measures to strengthen industrial competitiveness, including the formation of university clusters and funding measures for startups under the Japan Growth Strategy, and cited the establishment of a bold investment promotion tax regime to encourage domestic investment. Companies meeting certain conditions will be eligible for incentives including immediate expensing of machinery, equipment and buildings, as well as a 7% tax credit.
Measures to build a strong economy from the regions include establishing special tax measures for industrial land development through public-private partnerships, promoting business locations by easing regulations on factory green spaces, and facilitating funding for businesses providing essential services.