Note: Japanese domestic programs
The subsidies and tax incentives described on this page are programs offered by the Japanese government and are generally available only to businesses operating in Japan. They are presented here for reference.
The New Business Advancement & Monozukuri Subsidy (Manufacturing Subsidy) is a Japanese national subsidy program that provides integrated support for SMEs developing innovative products and services, entering new markets and high-value-added businesses, and developing overseas markets. It backs growth investment by manufacturing SMEs, such as installing equipment to take on parts machining in new fields.
In This Article
Please note
Subsidy rates, maximum amounts, application schedules, and requirements change with each application round. The following is an overview to help you understand the program framework. Before applying, always check the latest official application guidelines on the official website.
About the Program Consolidation
In June 2026, the first application round opened under the name New Business Advancement & Monozukuri, Commerce and Service Subsidy. Building on the concepts of the former SME New Business Advancement Subsidy and the Monozukuri Subsidy (Manufacturing Subsidy), the program provides integrated support for developing technically innovative products and services, entering new markets and high-value-added businesses, and developing overseas markets.
Do Machine Tools Qualify?
Machine tools can fall under the eligible-expense category of "machinery, equipment, and system construction costs," so they may qualify. However, rather than a simple equipment replacement or maintaining existing processes, a direct connection to the subsidized project — new product or service development, entry into new markets, strengthening export capabilities, and so on — is required.
Eligible Categories and Basic Requirements
There are three categories: the "Innovative New Products & Services" category, supporting the development of innovative new products and services; the "New Business Advancement" category, supporting entry into new markets and high-value-added businesses different from your existing business; and the "Global" category, supporting the strengthening of domestic capabilities for overseas market development. In all categories, you must prepare a 3-to-5-year business plan and meet basic requirements on added value, wage increases, minimum wage, and other criteria.
Subsidy Rates and Maximum Amounts
| Category | Main purpose | Subsidy rate | Maximum subsidy amount |
|---|---|---|---|
| Innovative New Products & Services | Development of innovative new products and services | SMEs: 1/2 (2/3 under certain conditions) Small enterprises / micro businesses and businesses under rehabilitation: 2/3 | Up to 35 million yen (normally up to 25 million yen; higher cap with the wage-increase special provision) |
| New Business Advancement | Entry into new markets and high-value-added businesses different from the existing business | SMEs: 1/2 (2/3 under certain conditions) | Up to 90 million yen (varies by workforce size and wage-increase special provision) |
| Global | Strengthening domestic capabilities for overseas market development (exports) | SMEs: 2/3 | Up to 90 million yen (varies by workforce size and wage-increase special provision) |
Upcoming Schedule
| Item | Date |
|---|---|
| Application round opens | Monday, June 29, 2026 |
| Application submissions open | Monday, August 31, 2026 |
| Application deadline | Wednesday, September 30, 2026, 6:00 p.m. (strict) |
| Selection results announced | Around December 2026 (planned) |
Frequently Asked Questions (FAQ)
Q. Does simply purchasing a machine tool qualify?
A. Purchase alone is not enough. You must show a business plan aligned with the purpose of the application category — new product or service development, entry into new markets, strengthening export capabilities, and so on — and demonstrate why the capital investment is necessary.
Q. When can we order the equipment?
A. As a rule, expenses ordered, contracted, or paid before the grant decision are not eligible, so you must wait for the grant application and grant decision after selection before proceeding.
Q. What is required to apply?
A. Applications are generally submitted electronically, and you need a gBizID Prime account, a business plan, a wage-increase plan, and, where applicable, a confirmation letter from a financial institution. Check the official application guidelines for details.
Summary
This subsidy backs SMEs' capital investment in developing innovative products and services, taking on new markets and high-value-added businesses, and developing overseas markets. Machine tools can also qualify if the investment is directly tied to the business objective. While the subsidy rates and maximum amounts are substantial, requirements such as wage increases and the soundness of the business plan are critical. For program details and the latest application information, see the official website. See also Application Process & Key Points.
References (official sources): New Business Advancement & Monozukuri, Commerce and Service Subsidy official website / SME Agency, Ministry of Economy, Trade and Industry