Investment Tax Incentive

Japan's new large-scale investment tax incentive: immediate expensing or a 7% credit, and how to actually apply

On July 31, 2026, Japan opened applications for a new capital investment tax incentive covering essentially every industry. You can elect immediate expensing or a 7% tax credit on an asset-by-asset basis, and buildings are included. Here are the two numerical thresholds, the application flow, and the traps that quietly disqualify a plan, drawn from primary sources.