R&D Tax Credit

A 50% R&D tax credit arrives in Japan: what the amended Industrial Technology Enhancement Act changes, and what gets missed

Japan's amended Industrial Technology Enhancement Act (Act No. 41 of 2026) adds a 40% R&D tax credit, rising to 50% for joint research with certified institutions. But the credit is capped at 10% of corporate tax, eligibility requires confirmation that commercialization is expected early, and the law's effective date is still awaiting a cabinet order. Here is what the statute and the tax outline actually say.