①Where an individual who files a blue return and who is a certified business adaptation business operator prescribed in Article 21-23, paragraph (1) of the Act on Strengthening Industrial Competitiveness (Act No. 98 of 2013) (including a certified environmental burden reduction business operator prescribed in Article 9, paragraph (8) of the Act on the Promotion of Business Activities by Food, etc. Business Operators and Ensuring Proper Transactions of Food, etc. for Realizing a Sustainable Supply of Food, etc.) pertaining to a certification under Article 21-22, paragraph (1) of the Act on Strengthening Industrial Competitiveness granted during the period from the date of enforcement of the Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc., and Other Matters (Act No. 70 of 2021) to March 31, 2028 (including, where the certification under Article 9, paragraph (1) of the Act on the Promotion of Business Activities by Food, etc. Business Operators and Ensuring Proper Transactions of Food, etc. for Realizing a Sustainable Supply of Food, etc. has been obtained for an environmental burden reduction business activity plan prescribed in Article 17, paragraph (3) of that Act (hereinafter referred to in this paragraph as an "environmental burden reduction business activity plan"), that certification (hereinafter referred to in this paragraph as a "business activity plan approval"); hereinafter referred to in this paragraph and paragraph (3) as a "specified certification"), whose certified business adaptation plan prescribed in Article 21-23, paragraph (2) of the Act on Strengthening Industrial Competitiveness (limited to one concerning business adaptation for reducing environmental load through energy use prescribed in Article 21-20, paragraph (2), item (ii) of that Act (hereinafter referred to in this paragraph as "business adaptation for reducing environmental load through energy use"), and including an environmental burden reduction business activity plan pertaining to a business activity plan approval (where a certification of a change under Article 7, paragraph (1) of the Act on the Promotion of Business Activities by Food, etc. Business Operators and Ensuring Proper Transactions of Food, etc. for Realizing a Sustainable Supply of Food, etc. as applied mutatis mutandis pursuant to Article 9, paragraph (8) of that Act has been granted, the plan after the change); hereinafter referred to in this paragraph and paragraph (3) as a "specified certified energy-use environmental burden reduction business adaptation plan") states that production process efficiency improvement equipment, etc. prescribed in Article 2, paragraph (13) of the Act on Strengthening Industrial Competitiveness (hereinafter referred to in this Article as "production process efficiency improvement equipment, etc.") is to be introduced as a measure for business adaptation for reducing environmental load through energy use to be carried out in accordance with that specified certified energy-use environmental burden reduction business adaptation plan (such an operator is referred to in paragraph (3) as a "certified energy-use environmental burden reduction business adaptation operator"), acquires, during the period from the date of the specified certification to the day on which three years have elapsed from that date, production process efficiency improvement equipment, etc. stated in its specified certified energy-use environmental burden reduction business adaptation plan that has not been used for business since its manufacture or construction, or manufactures or constructs production process efficiency improvement equipment, etc. stated in its specified certified energy-use environmental burden reduction business adaptation plan, and puts it to use for the individual's business in Japan (excluding the case where it is put to use for leasing; the same applies in paragraph (3)), the amount to be included in necessary expenses as the depreciation allowance for that production process efficiency improvement equipment, etc. in calculating the amount of business income of the individual for the year that includes the day on which it was put to use for the business (excluding the year that includes the day on which the business was discontinued and the year that includes a day within the period specified by Order of the Ministry of Finance as the period of the plan for investment in specified productivity-improving equipment, etc. prescribed in paragraph (1) of the following Article of an individual who has obtained the confirmation prescribed in that paragraph; referred to in paragraph (3) as the "year of commencement of use"), notwithstanding the provisions of Article 49, paragraph (1) of the Income Tax Act, is the amount calculated by the individual as necessary expenses, up to the sum of the amount of depreciation allowance calculated for that production process efficiency improvement equipment, etc. pursuant to the provisions of that paragraph and the special depreciation limit (meaning the amount equivalent to 30 percent of the acquisition cost of that production process efficiency improvement equipment, etc. (where the total acquisition cost of the production process efficiency improvement equipment, etc. acquired, manufactured or constructed as a measure for business adaptation for reducing environmental load through energy use carried out in accordance with its specified certified energy-use environmental burden reduction business adaptation plan exceeds 50 billion yen, the amount calculated by multiplying 50 billion yen by the ratio of the acquisition cost of the production process efficiency improvement equipment, etc. put to use for the business to that total; referred to in paragraph (3) as the "base acquisition cost")) (referred to in the following paragraph as the "total depreciation limit"); provided, however, that it may not be less than the amount to be included in necessary expenses as the depreciation allowance for that production process efficiency improvement equipment, etc. pursuant to the provisions of paragraph (1) of that Article.

②Where the amount included in necessary expenses as the depreciation allowance for the production process efficiency improvement equipment, etc. pursuant to the provisions of the preceding paragraph is less than its total depreciation limit, the amount to be included in necessary expenses as the depreciation allowance for that production process efficiency improvement equipment, etc. in calculating the amount of business income for the year following the year in which it was put to use for the business may, notwithstanding the provisions of Article 49, paragraph (1) of the Income Tax Act, be the amount equivalent to the sum of the amount to be included in necessary expenses as the depreciation allowance for that production process efficiency improvement equipment, etc. pursuant to the provisions of that paragraph and the amount calculated by the individual as necessary expenses, up to the amount of the shortfall.

③Where an individual who files a blue return and who is a certified energy-use environmental burden reduction business adaptation operator pertaining to a specified certification granted during the period from the date of enforcement of the Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc., and Other Matters (Act No. 70 of 2021) to March 31, 2028 acquires, during the period from the date of the specified certification to the day on which three years have elapsed from that date, production process efficiency improvement equipment, etc. stated in its specified certified energy-use environmental burden reduction business adaptation plan that has not been used for business since its manufacture or construction, or manufactures or constructs production process efficiency improvement equipment, etc. stated in its specified certified energy-use environmental burden reduction business adaptation plan, and puts it to use for the individual's business in Japan, if the individual does not seek the application of the provisions of paragraph (1) for that production process efficiency improvement equipment, etc., the sum of the amounts calculated by multiplying the base acquisition cost of that production process efficiency improvement equipment, etc. put to use for the business by the percentage specified in each of the following items according to the category of production process efficiency improvement equipment, etc. listed in that item (hereinafter referred to in this paragraph as the "maximum tax credit") is deducted, pursuant to the provisions of Cabinet Order, from the amount of income tax on the amount of gross income for the year of commencement of use. In this case, where the maximum tax credit of the individual for the year of commencement of use exceeds the amount equivalent to 20 percent of the income tax on business income before adjustment prescribed in Article 10, paragraph (8), item (iv) of the individual for that year of commencement of use, the amount to be deducted is limited to the amount equivalent to that 20 percent.

④The provisions of paragraph (1) do not apply to production process efficiency improvement equipment, etc. that an individual has acquired through a lease transaction without transfer of ownership.

⑤The provisions of paragraph (1) and paragraph (2) apply only where the final return contains a statement regarding the inclusion in necessary expenses of the amount to be included in necessary expenses pursuant to those provisions, and has attached to it a written statement concerning the calculation of the amount of depreciation allowance for the production process efficiency improvement equipment, etc. and any other documents specified by Order of the Ministry of Finance.

⑥The provisions of paragraph (1) and paragraph (3) do not apply to production process efficiency improvement equipment, etc. acquired, manufactured or constructed on or after April 1, 2024 that is stated in a certified business adaptation plan prescribed in Article 21-23, paragraph (2) of the Act on Strengthening Industrial Competitiveness concerning business adaptation for reducing environmental load through energy use prescribed in Article 21-20, paragraph (2), item (ii) of that Act, for which an application for the certification under Article 21-22, paragraph (1) of that Act was filed before that date (excluding, where an application for the certification of a change under Article 21-23, paragraph (1) of that Act was filed on or after that date and the certification of the change was granted, the plan after the change).

⑦The provisions of paragraph (3) apply only where the final return (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 production process efficiency improvement 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, and any other documents specified by Order of the Ministry of Finance. In this case, the acquisition cost of the production process efficiency improvement equipment, etc. that forms the basis for calculating the amount to be deducted pursuant to the provisions of that paragraph is limited to the acquisition cost of the production process efficiency improvement equipment, etc. stated in the documents attached to the final return.

⑧With 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 (3) are applied to income tax for the relevant year, the phrase "Chapter III (Calculation of Tax Amount)" in that item is deemed to be replaced with "Chapter III (Calculation of Tax Amount) and Article 10-5-5, paragraph (3) (Special Income Tax Credit for Acquisition of Production Process Efficiency Improvement Equipment, etc.) of the Act on Special Measures Concerning Taxation".

⑨Beyond what is provided for in paragraph (4) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (1) through (3) are specified by Cabinet Order.