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Jun 30, 2026 City of Kitakyushu Kitakyushu July 1 to December 4, 2026 (Reiwa 8); ends early once the budget is reached

Kitakyushu City's Productivity Subsidy, Middle East Situation Frame: Open Until December 4Kitakyushu City helps companies struggling with expensive oil

To respond to higher crude oil prices and material shortages caused by the situation in the Middle East, Kitakyushu City has added a Middle East Situation frame to its productivity improvement subsidy for small and medium-sized businesses facing rising prices. Applications run from July 1 to December 4, 2026. The subsidy covers costs such as switching from petroleum-derived products to non-petroleum ones, at up to one-half of eligible costs with a cap of JPY 1,000,000. It ends once the budget is reached.

Path to the Middle East Situation frame
  1. May 28Explained at the mayor's press conference (applications planned for early July)
  2. June 30Press release announcing the start of applications
  3. July 1Applications open
  4. December 4Last day (ends early once the budget is reached)

Key points

  • Application period: July 1 (Wed) to December 4 (Fri), 2026 (Reiwa 8). Closes early once the budget is reached
  • Two requirements: (1) the business is affected by the Middle East situation, and (2) gross profit in any one month from March 2026 onward (the target month) is lower than in the same month from March 2025 onward (the base month)
  • Eligible projects: (1) replacing petroleum-derived products with non-petroleum ones, and fees for experts to (2) research and select substitutes, (3) review the supply chain, or (4) negotiate price pass-through
  • Subsidy rate: up to one-half of eligible costs, capped at JPY 1,000,000 (fractions under JPY 1,000 are dropped)
Who is affected: Owners and accounting staff of small and medium-sized businesses that use petroleum-derived materials or products and are eligible under the city's subsidy

What to do in practice

  • Compare gross profit for the target and base months using the trial balance and check that the requirements are met
  • Collect quotes for substitutes and experts, and check the city's guide for the application steps and the rules on when costs may be paid
Note: Please confirm with your advisers how subsidy amounts are treated for accounting and tax (for example, when they are recognized as income). This article summarizes the city's press release. Check the source's application guide for detailed requirements.

Because of the situation in the Middle East, materials made from oil have become more expensive and harder to get. Kitakyushu City has created a program that pays up to half of the cost, up to JPY 1,000,000, when a company switches to materials that do not use oil. You can apply until December 4.

Does it look like you would be eligible?
  • Applies: You are affected by the Middle East situation
  • Applies: There is a month with lower gross profit than the same month last year
  • Applies: You will switch oil-based materials to other materials
  • Does not apply: All of your costs will be paid back

Points

  • You can get up to half of what you spent, at most JPY 1,000,000
  • Efforts such as switching oil-based materials to other materials are covered
  • One condition is that profit is lower than in the same month last year
For example: For example, if a project costs JPY 2,000,000, up to half of it, JPY 1,000,000, can be covered.

What the words mean

Gross profit
What is left after subtracting the cost of goods and materials from sales
Subsidy (jyoseikin)
Money the government or city provides if you meet the conditions

This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.

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