居住者が、各年において固定資産（山林を含む。以下この条及び次条において同じ。）の取得又は改良に充てるための国又は地方公共団体の補助金又は給付金その他政令で定めるこれらに準ずるもの（以下この条及び次条において「国庫補助金等」という。）の交付を受けた場合（その国庫補助金等の返還を要しないことがその年十二月三十一日（その者がその年の中途において死亡し、又は出国をした場合には、その死亡又は出国の時。以下この項及び同条第一項において同じ。）までに確定した場合に限る。）において、その年十二月三十一日までにその交付の目的に適合した固定資産の取得又は改良をしたときは、その交付を受けた国庫補助金等の額に相当する金額（その固定資産がその年の前年以前の各年において取得又は改良をした減価償却資産である場合には、当該国庫補助金等の額を基礎として政令で定めるところにより計算した金額）は、その者の各種所得の金額の計算上、総収入金額に算入しない。
If, in any year, a Resident is issued a national or local government subsidy or benefit or anything that Cabinet Order prescribes as being equivalent thereto (hereinafter referred to as a "government subsidy or its equivalent" in this Article and the following Article) which is meant to be allocated to acquiring or improving Fixed Assets (including forested land; hereinafter the same applies in this Article and the following Article) (but only if the final decision that the Resident need not return the government subsidy or its equivalent is reached by December 31 of that year (or by the time of the Resident's death or Absence From Japan, if the Resident dies or the Resident's Absence From Japan occurs partway through the year; hereinafter the same applies in this paragraph and paragraph (1) of the following Article)), and the Resident acquires or improves Fixed Assets in line with the purpose for which it is issued by December 31 of that year, an amount equal to the amount of the government subsidy or its equivalent issued (or, if the Fixed Assets are Depreciable Assets acquired or improved in a year before that year, the amount calculated pursuant to Cabinet Order based on the amount of the government subsidy or its equivalent) is not included in the gross revenue that is used to calculate that Resident's Income in Each Class.