①If a corporation that files a blue return, during the period from the date of enforcement of the Act Partially Amending the Local Revitalization Act (Act No. 30 of 2016) to March 31, 2028, pays to a certified local government prescribed in Article 8, paragraph (1) of the Local Revitalization Act (hereinafter referred to as a "certified local government" in this paragraph) a donation in connection with a town, people and job creation donation-utilizing project carried out by that certified local government (meaning a town, people and job creation donation-utilizing project prescribed in Article 5, paragraph (4), item (ii) of that Act that is set forth in the certified regional revitalization plan prescribed in Article 8, paragraph (1) of that Act prepared by that certified local government) (excluding a donation in respect of which it is found that the donor exclusively uses facilities established through the donation or that any other special benefit accrues to the donor; hereinafter referred to as a "specified donation" in this paragraph and the following paragraph), the amount obtained by deducting, from the amount equivalent to 40 percent of the total amount of specified donations paid in the business year that includes the date of payment (excluding the business year that includes the date of dissolution (other than dissolution due to a merger) and business years during liquidation) (limited to specified donations whose amounts are included in deductible expenses in calculating the amount of income for that business year; the same applies hereinafter in this paragraph), the amount specified by Cabinet Order as the amount to be deducted from the amount of prefectural inhabitant tax and municipal inhabitant tax (including Tokyo Metropolitan inhabitant tax) pursuant to the provisions of the Local Tax Act with respect to the payment of those specified donations (if that amount exceeds the amount equivalent to 10 percent of the total amount of specified donations paid in that business year, the amount equivalent to that 10 percent; hereinafter referred to as the "maximum tax credit" in this paragraph), is deducted from the corporation tax before adjustment on the income for that business year (meaning the corporation tax before adjustment prescribed in Article 42-4, paragraph (19), item (ii); the same applies hereinafter in this paragraph). In this case, if the maximum tax credit exceeds the amount equivalent to 5 percent of the corporation tax before adjustment on the income for that business year, the amount to be deducted is limited to the amount equivalent to that 5 percent.

②The provisions of the preceding paragraph apply only if a document stating the amount of specified donations, the amount to be deducted, and the details of the calculation of that amount, which are subject to the deduction under that paragraph, is attached to the tax return, etc. (including an amended return or written request for reassessment, if one is filed to increase the amount to be deducted pursuant to the provisions of that paragraph), and the corporation retains the documents specified by Order of the Ministry of Finance as documents certifying that the donations stated in that document fall under specified donations. In this case, the amount of specified donations serving as the basis for the calculation of the amount to be deducted pursuant to that paragraph is limited to the amount of specified donations stated in the document attached to the tax return, etc.

③The provisions of Article 42-4, paragraphs (23) and (24) apply mutatis mutandis where the provisions of paragraph (1) are applied. In this case, the phrase "paragraphs (1), (4), (7) and (14)" in paragraph (23) of that Article is deemed to be replaced with "Article 42-12-2, paragraph (1)".

④Beyond what is prescribed in the preceding two paragraphs, Cabinet Order provides for the necessary particulars concerning the application of the provisions of paragraph (1).