How will the Business Restructuring Subsidy change in fiscal year 2022 (Reiwa 4)?

A large-scale subsidy program rumored to offer up to 100 million yen

The "Business Restructuring Subsidy" appears to be returning next fiscal year with even more power. However, it seems there are several changes compared to this year. If you assume it will be the same, you might be disappointed.

Let's check the changes, focusing on the key points!

The maximum subsidy amount will be reduced!

For the "Normal Category" used by many companies, the maximum subsidy amount will be lowered.

For companies with 20 or fewer employees, the limit was 40 million yen this fiscal year, but it will be 20 million yen next fiscal year. It will be cut in half.

If you are considering building renovations or large-scale equipment installation, whether you can make it in time for the 4th round (deadline: December 21, 2021) or the 5th round (deadline: around March 2022) of this fiscal year will likely be the deciding factor.

The subsidy rate remains unchanged at 2/3 (for small and medium-sized enterprises, up to 60 million yen).

Building costs: New construction is prohibited in principle!?

The Business Restructuring Subsidy was a new type of subsidy program that allowed for new building construction as an eligible expense, which was previously unheard of. However, for next fiscal year, it will be "limited to renovations in principle."

It states that "certain restrictions will be placed on new construction." I wonder what kind of restrictions those will be?

The expression "limited to renovations in principle" seems like it will be a fairly strict limitation.

In that sense, for those considering new construction, this fiscal year is the last chance.

Sales decline requirements are slightly relaxed

This fiscal year, the main comparison period was from October 2020 onwards, but next fiscal year, you can use any period from April 2020 onwards for comparison. Since the target period has expanded, more companies will meet the requirements. This feels like a slight improvement.

A "Green Growth Category" will be established as a new category

Initiatives aligned with the Green Growth Strategy will be eligible, and the maximum subsidy amount will be 100 million yen (for small and medium-sized enterprises) and up to 150 million yen for mid-sized enterprises, which exceeds this year's amounts.

The main theme is CO2 reduction and carbon neutrality (achieving net-zero CO2 emissions).

It must fall under one of the 14 fields of the Green Growth Strategy "Action Plan." You might be wondering, what are those 14 fields? It seems to be this.

https://www.meti.go.jp/press/2021/06/20210618005/20210618005.html

There was also a detailed explanation here.

https://www.meti.go.jp/policy/energy_environment/global_warming/ggs/index.html

The target fields are quite broad, including agriculture, forestry, and fisheries, but please do not mistake this: it is strictly for initiatives aimed at CO2 reduction and carbon neutrality.

I suppose we are waiting for the public offering guidelines to be released for the detailed scope. It will be exciting to see if companies planning advanced initiatives will be eligible.

Information source is here

The source of this information is here. An overview is posted on the regular Business Restructuring Subsidy portal site and the Ministry of Economy, Trade and Industry page.

https://jigyou-saikouchiku.go.jp/pdf/hoseiyosan_gaiyou.pdf

Although it is a matter for next year, those who can prepare should start gathering information and looking for experts who can provide support now.

This article was written by
Mousou Biz Planning Representative Shigeki Kawahara
https://mousoubiz.com/
https://twitter.com/mousoubiz