②Where an individual who files a blue return carries out, during the period specified by Cabinet Order within the period from April 1, 2022 to March 31, 2027, within the remote island areas prescribed in Article 3, item (iii) of the Act on Special Measures for the Promotion and Development of Okinawa, the acquisition, etc. (meaning acquisition or manufacture or construction, and, for buildings and their associated facilities, including acquisition or construction through work for renovation (meaning extension, reconstruction, repair or remodeling); hereinafter the same applies in this paragraph and paragraph (4)) of equipment of a scale specified by Cabinet Order to be used for a business specified by Cabinet Order within the hotel business (hereinafter referred to in this paragraph as the "hotel business"), if the individual puts the equipment for which the individual carried out the acquisition, etc. to use for the individual's hotel business within those areas (limited to the case specified by Cabinet Order as a case that contributes to the promotion of those areas), the amount to be included in necessary expenses as the depreciation allowance for the buildings and their associated facilities specified by Cabinet Order among those constituting that equipment (excluding those subject to the provisions of the preceding paragraph and those acquired through a lease transaction without transfer of ownership; hereinafter referred to in this paragraph and the following paragraph as "hotel business buildings, etc.") in calculating the amount of business income of the individual for the year that includes the day on which it was put to that 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 those hotel business buildings, etc. pursuant to the provisions of that paragraph and the amount equivalent to 8 percent of their acquisition cost; provided, however, that it may not be less than the amount to be included in necessary expenses as the depreciation allowance for those hotel business buildings, etc. pursuant to the provisions of that paragraph.

③The provisions of Article 11, paragraph (2) apply mutatis mutandis to the calculation of the amount of depreciation allowance for industrial machinery, etc. subject to the provisions of paragraph (1) or hotel business buildings, etc. subject to the provisions of the preceding paragraph. In this case, the phrase "its total depreciation limit" in paragraph (2) of that Article is deemed to be replaced with "the limit of the depreciation allowance that may be included in necessary expenses pursuant to the main clause of Article 12, paragraph (1) or paragraph (2)".

⑤Where the amount included in necessary expenses as the depreciation allowance for the industrial promotion machinery, etc. pursuant to the provisions of the preceding paragraph in the year in which the provisions of that paragraph were applied is less than the limit of the depreciation allowance that may be included in necessary expenses pursuant to the main clause of that paragraph for that year, the amount to be included in necessary expenses as the depreciation allowance for that industrial promotion machinery, etc. in calculating the amount of business income for the year following that year may, notwithstanding the provisions of Article 49, paragraph (1) of the Income Tax Act (where the provisions of the preceding paragraph are applied to that industrial promotion machinery, etc., including the provisions of that paragraph), be the amount equivalent to the sum of the amount to be included in necessary expenses as the depreciation allowance for that industrial promotion machinery, etc. pursuant to the provisions of Article 49, paragraph (1) of that Act (where the provisions of the preceding paragraph are applied to that industrial promotion machinery, etc. in the year following that year, the amount equivalent to the limit of the depreciation allowance that may be included in necessary expenses pursuant to the main clause of that paragraph for that following year) and the amount calculated by the individual as necessary expenses, up to the amount of the shortfall.

⑥The provisions of Article 11, paragraph (3) apply mutatis mutandis to the application of the provisions of the preceding paragraphs.

⑦Beyond what is provided for in the preceding paragraph, necessary matters concerning the application of the provisions of paragraphs (2) through (5) are specified by Cabinet Order.