Act on Special Measures Concerning Taxation

Where an individual has, during the period from April 1, 2014 to December 31, 2028, carried out a seismic retrofit (meaning an extension, reconstruction, repair or remodeling for the purpose of improving safety against earthquakes) of a house used for the individual's residence (limited to a house built on or before May 31, 1981 that is specified by Cabinet Order; referred to as a "house used for one's residence" in the following paragraph), which has been certified pursuant to the provisions of Order of the Ministry of Finance (hereinafter referred to in this paragraph, the following paragraph, and paragraphs (4), (8) and (13) of the following Article as a "housing seismic retrofit"), the amount equivalent to 10 percent (if that amount includes a fraction of less than 100 yen, the fraction is to be rounded down) of the amount specified by Cabinet Order as the standard cost of the seismic work pertaining to the housing seismic retrofit (where a subsidy, etc. (meaning a subsidy or benefit granted by the national government or a local government, or anything equivalent thereto; hereinafter the same applies in this paragraph and paragraphs (1) through (4), (7) and (8) of that Article) is granted with respect to the cost of the housing seismic retrofit, the amount obtained by deducting the amount of the subsidy, etc. from that amount (hereinafter referred to in this paragraph and paragraphs (4), (6), (8) and (13) of that Article as the "standard cost of seismic retrofit"), and where the standard cost of seismic retrofit exceeds 2,500,000 yen, 2,500,000 yen; referred to as the "credit-eligible standard cost amount for earthquake-resistant renovation" in paragraph (8) of that Article) is deducted from the amount of income tax of the individual for that year.

The provisions of the preceding paragraph apply only where the tax return contains a statement concerning the deduction with regard to the amount to be deducted under the provisions of that paragraph, and has attached to it a written statement concerning the calculation of that amount and a document issued by the head of the local government of the location of the house prescribed in that paragraph or any other person specified by Order of the Ministry of Finance certifying that the house used for one's residence is a house on which the housing seismic retrofit referred to in that paragraph has been carried out and other matters specified by Order of the Ministry of Finance, and any other document specified by Order of the Ministry of Finance (referred to as a "seismic retrofit certificate" in the following paragraph).

Even where no tax return has been filed, or where a tax return without the statement or attachments referred to in the preceding paragraph has been filed, if the district director finds that there were unavoidable circumstances for the failure to file it or the absence of the statement or attachments, the district director may apply the provisions of paragraph (1), but only where a document containing that statement and the written statement and seismic retrofit certificate referred to in that paragraph have been submitted.

The provisions of Article 92, paragraph (2) of the Income Tax Act apply mutatis mutandis to the amount to be deducted under the provisions of paragraph (1). In this case, the phrase "credit under the preceding paragraph" in paragraph (2) of that Article is deemed to be replaced with "credit under the preceding paragraph and Article 41-19-2, paragraph (1) (Special Income Tax Credit Where Seismic Retrofit of Existing Housing Is Carried Out) of the Act on Special Measures Concerning Taxation", and the phrase "the amount allowed as a credit" is deemed to be replaced with "the total of the amounts allowed as these credits".

With regard to the calculation of the amount of income tax listed in Article 120, paragraph (1), item (iii) of the Income Tax Act in the case where the provisions of paragraph (1) are applied to income tax for the year, the phrase "Chapter III (Calculating the Amount of Taxes)" in that item is deemed to be replaced with "Chapter III (Calculating the Amount of Taxes) and Article 41-19-2, paragraph (1) (Special Income Tax Credit Where Seismic Retrofit of Existing Housing Is Carried Out) of the Act on Special Measures Concerning Taxation".

Beyond what is prescribed in paragraph (2) through the preceding paragraph, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).