Can you combine government subsidies with income tax deductions?

Yes. Beyond direct cash subsidies, qualifying green renovations grant an income tax credit equal to 10% of standard construction costs (up to 250,000 JPY tax reduction).

Does property tax decrease following green renovations?

Yes. Filing notification with your local municipality within 3 months of completion entitles the building to a 1/3 fixed asset property tax abatement for the subsequent tax year.

JapanUpdated for 2026Finance

Japan Home Energy-Efficiency Renovation Subsidy & Tax Credit Calculator 2026

Calculate total government subsidies (up to 2M JPY for window retrofits and EcoCute heat pumps) and statutory income tax credits (10% standard construction cost) for residential green renovations in Japan.

Mortgages & Home Loans Property Taxes & Fees Income Tax & Brackets

Calculated Result

Net Real Out-of-Pocket Cost

¥831,600

Total State Financial Support

¥968,400

Calculator Inputs

Total Renovation Cost Invoice (Tax Included)

Quick select:

Primary Renovation Scope

Net Real Out-of-Pocket Cost

¥831,600

Total State Financial Support

¥968,400

Direct Cash Renovation Subsidy

¥876,000

Income Tax Credit (Tax Return)

¥92,400

State grants and tax relief subsidize over 40% of your total renovation invoice.

Cost vs State Subsidies

Net Out-of-Pocket

¥831,600(46%)

Total State Financial Support

¥968,400(54%)

Based on MLIT, METI, and MOE Joint Energy Renovation Campaign rules and Act on Special Tax Measures Art. 41-19-3. Grants are processed via registered contractors.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: 租税特別措置法第41条の19の3 (住宅特定改修特別税額控除・省エネ改修) 及び国土交通省住宅省エネキャンペーン交付規則Last Verified: 2026-09-03

Calculation Methodology

Net Out-of-Pocket = Total Renovation Cost - State Energy Grants - Income Tax Credit (10% of standard cost, max 250k JPY).

Frequently Asked Questions

It subsidizes roughly 50% of qualifying window renovation costs (double-glazed inner sash, glass replacements), up to a maximum grant of 2,000,000 JPY per household.