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 three main subsidies covered so far are not the only support programs you can use for capital investment.
Depending on your situation, you can also consider a subsidy for introducing qualifying low-carbon equipment through leasing, subsidies tied to business succession or M&A, and local governments' own capital investment grants.
On the other hand, some programs with similar-sounding names do not cover the equipment itself, such as machine tools.
This page organizes the other main programs as of 2026 (Reiwa 8).
Check the Latest Information
Subsidy and tax programs are revised each fiscal year and application round, including maximum subsidy amounts, subsidy rates, eligibility requirements, and schedules.
This page is an overview based on research as of 2026 (Reiwa 8).
Before applying, always check the latest official application guidelines (original documents) published by each program office, ministry, or local government, and consult a certified support organization for management innovation, a tax accountant, or another professional.
ESG Lease Subsidy
The ESG Lease Subsidy is a Ministry of the Environment program (the ESG Lease Promotion Project) that reduces the burden on SMEs and others when they introduce decarbonization equipment through leasing.
A leasing company designated by the Ministry of the Environment files the application, and the subsidy is applied to reduce the lease payments.
Eligible equipment is decarbonization equipment that meets the ministry's standards; the subsidy rate is basically up to 4% of the total lease payments, with up to an additional 2% depending on the ESG initiatives of the leasing company and the user.
Its key feature is that you can adopt energy-saving, decarbonizing equipment while keeping the initial investment low.
If a CNC automatic lathe is registered as eligible equipment, this program can be used for it.
For official information, see the ESG Lease Promotion Project site (https://esg-lease.or.jp/).
Business Succession & M&A Subsidy
The Business Succession & M&A Subsidy (Jigyo Shokei / M&A Hojokin, formerly the Business Succession & Handover Subsidy) supports management innovation prompted by business succession or M&A.
Eligible support includes capital investment under a new owner, as well as expenses for engaging professionals in connection with an M&A and for PMI (the post-merger integration process).
In cases where production equipment is renewed at the time of a business succession, the installation of a CNC automatic lathe may qualify as part of the supported project.
An "equipment purchase alone" rarely fits the program's purpose
This subsidy exists to encourage management innovation prompted by business succession or M&A.
Note that a mere equipment purchase with no connection to a succession or M&A is unlikely to fit the program's purpose.
For official information, see the Business Succession & M&A Subsidy program office site (https://shoukei-mahojokin.go.jp/).
Digitalization & AI Adoption Subsidy (equipment itself is not eligible)
The Digitalization & AI Adoption Subsidy (formerly the IT Introduction Subsidy) is a program centered on software adoption.
An important caution: machinery and equipment such as CNC automatic lathes are not eligible.
You cannot use this subsidy to cover the purchase cost of a machine tool itself.
What may be relevant is limited to software adoption, such as production management systems and CAD/CAM.
If you are considering the capital investment itself, the other subsidies explained on this site are the main options.
For official information, see the Digitalization & AI Adoption Subsidy program office site (https://it-shien.smrj.go.jp/).
Local Governments' Own Capital Investment Grants
Apart from the national subsidies, prefectures and municipalities also run their own capital investment grant programs.
They aim to promote local industry, and their grant rates are sometimes more generous than the national programs.
A representative example is the Tokyo Metropolitan Government's "Capital Investment Support Program for Breakthrough Business Growth" (Tokyo Metropolitan Small and Medium Enterprise Support Center), which as of 2026 offers large-scale support such as a grant rate of 4/5 and a maximum grant of 200 million yen.
However, these grant programs vary greatly by region and fiscal year, so be sure to check the latest guidelines for your company's location.
Also, whether a grant can be combined with a national subsidy differs by program, so confirm this as well.
Start by researching programs where you are located
Local-government grants often have short application windows, and their content frequently changes from year to year.
Use resources such as "Mirasapo Plus" (https://mirasapo-plus.go.jp/), a comprehensive information site for SME support, to check early on the programs offered by your prefecture and municipality.
How to Choose the Right Program for Your Company
Which program suits you best depends on the purpose of your capital investment.
For the full picture of programs to consider by purpose, such as new product development, labor saving, new business advancement, or business succession, see the Subsidies & Support top page.
For the application flow common to all subsidies and the critical rule that orders placed before the grant decision are not eligible, see Application Process & Key Points.