The Way Forward
Special Zones for Reconstruction
To accelerate reconstruction and stimulate investment in the affected regions, the Government has established a system of Special Zones for Reconstruction, focused on offering deregulation and simplified statutory procedures, a variety of tax breaks and financial incentives, and new mechanisms to facilitate land-use restructuring. Specific measures include:
Regulations and procedures:
● Reduced public housing eligibility requirements
● Special agricultural land conversion measures for the development of food, fisheries and forestry processing and sales facilities.
Tax breaks:
● Special depreciation / tax credits
● Tax credits equivalent to 10% of combined salaries and other expenses for employees from severely damaged areas
● Five-year corporate tax exemption for new enterprises
Financial and fiscal assistance:
● Grants for reconstruction projects
● Interest rate compensation for reconstruction projects
Land use restructuring:
● Special measures to facilitate land use restructuring beyond existing frameworks
● Relaxed requirements for floor area ratios for building construction
In total, fifty-two plans for Special Zones for Reconstruction have been approved, which includes those intended for the promotion of town-building through land-use restructuring, renewable energy initiatives to support regional development, and the development of a medical industrial cluster.
In seeking to support the rebuilding of livelihoods and communities, the Special Zones for Reconstruction are an important step towards enhancing collaboration with the private sector and attracting investment to the region. With substantial support from the Reconstruction Agency and prefectural governments, affected regions are actively engaging corporations and welcome investment, including foreign direct investment, into the local economy.
