First round of corporate hometown tax donation projects decided ~ Second round applications accepted from late September ~

The Cabinet Office recently determined the first batch of projects eligible for the Regional Revitalization Support Tax System (Corporate Hometown Tax). This system allows companies to receive corporate tax benefits when donating to local governments' regional revitalization initiatives. To encourage corporate donations, the minimum donation amount was set low at ¥100,000, and the tax reduction effect was doubled compared to previous levels.

The 102 projects announced on August 2nd span four areas: "Job Creation," "Population Flow to Rural Areas," "Work Style Reform," and "Community Development." Examples include Nitori Holdings, headquartered in Sapporo, donating ¥500 million over four years to Yubari City, Hokkaido, for its "Accelerating Compact City Promotion and Regional Resource/Energy Survey"; and outdoor goods company Montbell donated ¥18.52 million to Higashikawa Town, Hokkaido, for its "Project to Promote Regional Revitalization through Winter Tourism Attraction." Beyond these patterns of donations to municipalities with corporate ties or projects closely related to the companies themselves, there are also initiatives linking with other regional revitalization measures like the "Regional Revitalization Promotion Grant" or coordinating with the Base Strengthening Tax System.

Yoshinobu Kikuchi, Senior Advisor at the Cabinet Office's Regional Revitalization Promotion Office, emphasized the system's significance and corporate benefits: "We expect this tax system to generate new private capital flows and accelerate regional revitalization. Local governments will approach companies with project proposals to request donations. As this also promotes corporate social contribution efforts, we encourage active utilization." The second round of applications will be accepted at the end of September, with certification scheduled for November. Details of the first certified projects can be viewed at ( www.kantei.go.jp/jp/singi/tiiki/tiikisaisei/pdf/h280802press.pdf ).

When donating through the Corporate Hometown Tax Program...