①Where a corporation that files a blue return carries out the acquisition, etc. (meaning acquisition (limited to the acquisition of that which has not been used for business since its manufacture or construction; hereinafter the same applies in this paragraph) or manufacture or construction, and, for a building, including acquisition or construction through work for renovation (meaning extension, reconstruction, repair or remodeling); hereinafter the same applies in this paragraph and the following paragraph) of machinery and equipment, tools, furniture and fixtures, buildings, building fixtures, structures and software specified by Cabinet Order that constitute production or similar equipment, which fall under specified productivity-improving equipment, etc. prescribed in Article 2, paragraph (20) of the Act on Strengthening Industrial Competitiveness (limited to that for which the corporation has obtained the confirmation under paragraph (20) of that Article within the period from the date of enforcement of the Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc. to Achieve the Sustainable Development of Corporate Business Activities in Light of Changes in Economic and Social Conditions (Act No. 29 of 2026) to March 31, 2029 (referred to in paragraph (3) as the "designated period"); referred to in paragraph (3) and paragraph (4) as "specified productivity-improving equipment, etc."), and which are of a scale specified by Cabinet Order (hereinafter referred to in this Article as "specified machinery and equipment, etc."), if, during the period from the day on which the corporation obtained that confirmation to the day on which five years have elapsed from that day, the corporation carries out the acquisition, etc. of the specified machinery and equipment, etc. and puts it to use for the corporation's business in Japan (excluding the case where it is put to use for leasing; the same applies in the following paragraph), the depreciation limit for that specified machinery and equipment, etc. for the business year that includes the day on which it was put to use for the business (excluding the business year that includes the day of dissolution (excluding dissolution due to a merger) and each business year during liquidation; referred to in the following paragraph and paragraph (10) as the "business year of commencement of use") is, notwithstanding the provisions of Article 31, paragraph (1) or paragraph (2) of the Corporation Tax Act, the sum of the ordinary depreciation limit for that specified machinery and equipment, etc. and the special depreciation limit (meaning the amount equivalent to the amount obtained by deducting the ordinary depreciation limit from the acquisition cost of that specified machinery and equipment, etc.).

②Where a corporation that files a blue return carries out the acquisition, etc. of specified machinery and equipment, etc., if, during the period from the day on which the corporation obtained the confirmation prescribed in the preceding paragraph for that specified machinery and equipment, etc. to the day on which five years have elapsed from that day, the corporation carries out the acquisition, etc. of that specified machinery and equipment, etc. and puts it to use for the corporation's business in Japan, the sum of the amounts equivalent to 7 percent (for buildings, building fixtures and structures, 4 percent) of the acquisition cost of that specified machinery and equipment, etc. put to use for the business (hereinafter referred to in this paragraph and paragraph (4) as the "maximum tax credit") is deducted from the corporation tax before adjustment (meaning the corporation tax before adjustment prescribed in Article 42-4, paragraph (19), item (ii); hereinafter the same applies up to paragraph (4)) on income for the business year of commencement of use, except where the provisions of that paragraph are applied to that specified machinery and equipment, etc. In this case, where the maximum tax credit of the corporation for the business year of commencement of use exceeds the amount equivalent to 20 percent of the corporation tax before adjustment on income of the corporation for that business year of commencement of use, the amount to be deducted is limited to the amount equivalent to that 20 percent.

③Where a corporation that files a blue return and that is a certified business adaptation business operator prescribed in Article 21-23, paragraph (1) of the Act on Strengthening Industrial Competitiveness pertaining to a certification under Article 21-22, paragraph (1) of that Act granted within the designated period (limited to one whose certified business adaptation plan prescribed in paragraph (2) of that Article (limited to one concerning business adaptation to drastic changes in international economic conditions prescribed in Article 21-20, paragraph (2), item (iii) of that Act; hereinafter referred to in this paragraph and the following paragraph as a "certified business adaptation plan for drastic changes in international economic conditions") states that specified productivity-improving equipment, etc. is to be introduced as a measure for business adaptation to drastic changes in international economic conditions prescribed in that item to be carried out in accordance with that certified business adaptation plan for drastic changes in international economic conditions) has an excess carried-forward tax credit amount in a business year (excluding the business year that includes the day of dissolution (excluding dissolution due to a merger) and each business year during liquidation, and limited to each business year for which it has been certified, as specified by Order of the Ministry of Finance, that the corporation has been continuously and steadily carrying out business adaptation to drastic changes in international economic conditions prescribed in Article 21-20, paragraph (2), item (iii) of that Act in accordance with that certified business adaptation plan for drastic changes in international economic conditions, from the business year that includes the first day of the implementation period prescribed in Article 21-22, paragraph (3), item (ii) of that Act pertaining to that plan to the business year for which the corporation seeks the application of the provisions of this paragraph, and other matters), the amount equivalent to that excess carried-forward tax credit amount is deducted from the corporation tax before adjustment on income for that business year. In this case, where the excess carried-forward tax credit amount of the corporation for that business year exceeds the amount equivalent to 20 percent of the corporation tax before adjustment on income of the corporation for that business year (where there is an amount to be deducted from the corporation tax before adjustment on income for that business year pursuant to the provisions of the preceding paragraph for specified machinery and equipment, etc. put to use for the business in that business year, the balance after deducting that amount), the amount to be deducted is limited to the amount equivalent to that 20 percent.

④The excess carried-forward tax credit amount prescribed in the preceding paragraph means the sum of the amounts of the maximum tax credit (limited to that pertaining to specified machinery and equipment, etc. that is specified productivity-improving equipment, etc. stated in the certified business adaptation plan for drastic changes in international economic conditions of the certified business adaptation business operator referred to in that paragraph) of the corporation for each business year that began within three years before the first day of the relevant business year (limited to each business year where the corporation has continuously filed blue returns up to the relevant business year) that remain undeducted even after the deduction under the provisions of paragraph (2) (where there is an amount already deducted from the corporation tax before adjustment in each of those business years pursuant to the provisions of the preceding paragraph, the balance after deducting that amount).

⑤The provisions of paragraph (1) do not apply to specified machinery and equipment, etc. that a corporation has acquired through a lease transaction without transfer of ownership.

⑥The provisions of paragraph (1) apply only where the tax return, etc. has attached to it a written statement concerning the calculation of the depreciation limit for the specified machinery and equipment, etc. (including, where the provisions of paragraph (8) do not apply because all of the requirements listed in the items of that paragraph are met, a document clarifying that all of the requirements listed in those items are met).

⑦The provisions of paragraph (2) apply only where the tax return, etc. (including, where an amended return or a written request for reassessment that increases the amount to be deducted pursuant to the provisions of that paragraph is submitted, that amended return or written request for reassessment) has attached to it a document stating the acquisition cost of the specified machinery and equipment, etc. subject to the deduction under the provisions of that paragraph, the amount to be deducted and the details of the calculation of that amount (including, where the provisions of the following paragraph do not apply because all of the requirements listed in the items of that paragraph are met, a document clarifying that all of the requirements listed in those items are met). In this case, the acquisition cost of the specified machinery and equipment, etc. that forms the basis for calculating the amount to be deducted pursuant to the provisions of paragraph (2) is limited to the acquisition cost of the specified machinery and equipment, etc. stated in the documents attached to the tax return, etc.

⑧The provisions of paragraph (1) and paragraph (2) do not apply for a business year in which a corporation (excluding a small and medium sized enterprise prescribed in Article 42-4, paragraph (19), item (vii) (excluding one that falls under an excluded business operator prescribed in item (viii) of that paragraph or a group tax sharing excluded business operator prescribed in item (viii)-2 of that paragraph) and an agricultural cooperative, etc. prescribed in item (ix) of that paragraph; the same applies in item (i) and item (ii)) fails to meet any of the following requirements (excluding that business year in the case specified by Cabinet Order as a case where the business year is neither the business year of establishment prescribed in Article 42-12-5, paragraph (4), item (i) (referred to in item (i), (b) and the following paragraph as the "business year of establishment") nor a business year of the merger, etc., and the amount of income for that business year is equal to or less than the amount of income for the business year preceding that business year).

⑨The business year of the merger, etc. prescribed in the preceding paragraph means a business year that includes the day of the merger, etc., the day of the transfer, etc. or the day of the succession, in the case where the corporation prescribed in that paragraph is a merging corporation, a splitting corporation, a successor corporation in a company split, a corporation making a capital contribution in kind or a corporation receiving a capital contribution in kind pertaining to a merger, company split or capital contribution in kind (for a company split or capital contribution in kind, limited to one that transfers a business; hereinafter referred to in this paragraph as a "merger, etc."), is a corporation that transferred a business or a corporation that acquired a business pertaining to the transfer or acquisition of a business (hereinafter referred to in this paragraph as a "transfer, etc."), or is a predecessor corporation or a successor corporation pertaining to a succession under a special law, or in any other case specified by Cabinet Order, or a business year that includes any other day specified by Cabinet Order (excluding the business year of establishment of that corporation).

⑩The provisions of paragraph (3) apply only where the final returns prescribed in Article 2, item (xxxi) of the Corporation Tax Act for the business year of commencement of use and each subsequent business year have attached to them a written statement of the excess carried-forward tax credit amount prescribed in that paragraph, and the tax return, etc. for the business year for which the corporation seeks the application of the provisions of that paragraph (including, where an amended return or a written request for reassessment that increases the amount to be deducted pursuant to the provisions of that paragraph is submitted, that amended return or written request for reassessment) has attached to it a document stating the excess carried-forward tax credit amount prescribed in that paragraph that is subject to the deduction under the provisions of that paragraph, the amount to be deducted and the details of the calculation of that amount.

⑪The provisions of Article 42-4, paragraphs (23) and (24) apply mutatis mutandis where the provisions of paragraph (2) or paragraph (3) apply. In this case, the phrase "paragraphs (1), (4), (7) and (14)" in paragraph (23) of that Article is deemed to be replaced with "Article 42-12-7, paragraphs (2) and (3)".

⑫Beyond what is provided for in paragraph (5) through the preceding paragraph, the determination of whether the requirement listed in paragraph (8), item (i) is met in the case where the amount of salary or other wages paid to continuing employees and the comparative amount of salary or other wages paid to continuing employees are zero, and other necessary matters concerning the application of the provisions of paragraphs (1) through (4) are specified by Cabinet Order.