New Hokkaido GX Promotion Tax System

Hokkaido has launched the GX Promotion Tax System to support renewable energy projects such as solar power within the region. Companies approved by Hokkaido can receive exemptions on local taxes including corporate inhabitant tax (excluding per capita levy), corporate enterprise tax, and fixed asset tax for up to 10 years. Real estate acquisition tax can be fully exempted.

This system applies to corporations doing business in Hokkaido, including those owned by foreign nationals. To qualify, companies must get their business plan certified by Hokkaido before starting the project. Prior consultation is required, usually at least two months before submitting the application.

There are multiple application deadlines each year, with the first in late May 2026 and others following through 2027. The process requires compliance with laws and community agreement.

Businesses interested should contact the GX Promotion Division of Hokkaido's Economy Department for detailed procedures and check official sources for up-to-date information.