②If a corporation that files a blue return and that, at the end of a business year (excluding the business year that includes the date of dissolution (other than dissolution due to a merger) and business years during liquidation), falls under the business operator listed in column 1 of any item of the table in the preceding paragraph has a carried-over excess of the tax credit limit in that business year, the amount equivalent to that carried-over excess of the tax credit limit is deducted from the corporation tax before adjustment on the income for that business year. In this case, if the carried-over excess of the tax credit limit of the corporation for that business year exceeds the amount equivalent to 20 percent of the corporation tax before adjustment of the corporation on the income for that business year (if there is an amount to be deducted from the corporation tax before adjustment on the income for that business year pursuant to the provisions of that paragraph with respect to industrial machinery, etc. put to use for the business in that business year, the remaining amount after deducting that amount), the amount to be deducted is limited to the amount equivalent to that 20 percent.

③The carried-over excess of the tax credit limit prescribed in the preceding paragraph means the sum of the amounts, out of the maximum tax credit of the corporation for each business year that began within four years before the first day of the business year in question (limited to each business year in which the corporation has filed blue returns continuously up to that business year), that could not be fully deducted even after the deduction under paragraph (1) (if there is an amount already deducted from the corporation tax before adjustment in each such business year pursuant to the provisions of the preceding paragraph, the remaining amount after deducting that amount).

④The provisions of paragraph (1) apply only if a document stating the acquisition cost of the industrial machinery, etc., 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). In this case, the acquisition cost of the industrial machinery, etc. serving as the basis for the calculation of the amount to be deducted pursuant to that paragraph is limited to the acquisition cost of the industrial machinery, etc. stated in the document attached to the tax return, etc.

⑤The provisions of paragraph (2) apply only if a written statement of the carried-over excess of the tax credit limit prescribed in that paragraph is attached to the final return prescribed in Article 2, item (xxxi) of the Corporation Tax Act for each business year from the business year of commencement of use onward, and a document stating the carried-over excess of the tax credit limit prescribed in that paragraph, 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. for the business year for which the application of the provisions of that paragraph is sought (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).

⑥The provisions of Article 42-4, paragraphs (23) and (24) apply mutatis mutandis where the provisions of paragraph (1) or (2) 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 42-9, paragraphs (1) and (2)".

⑦Beyond what is provided for in the preceding three paragraphs, necessary matters concerning the application of the provisions of paragraphs (1) through (3) are specified by Cabinet Order.