Kanagawa Prefecture to Promote Subsidies and Tax Credits for EVs

Kanagawa Prefecture announced on April 15, 2008, that it will launch a program to provide subsidies and tax credits for next-generation electric vehicles (EVs) powered by lithium-ion batteries, starting from fiscal 2009.

An EV produces zero emissions while running. Its CO2 emissions, even if taking into account the emissions from electricity generation at power plants, are about one-fourth that of an average gasoline car, and less than a half of a hybrid car's emissions. Rechargeable lithium-ion batteries have undergone significant downsizing and capacity increases with the recent spread of mobile phones using them, and this has allowed them to be equipped on vehicles for practical use. EVs containing such batteries are expected to be on the market in 2009.

Kanagawa prefecture plans to have 3,000 EVs on the road by fiscal 2014. In addition to an EV purchase subsidy from the national government, Kanagawa Prefecture will provide an amount equal to half of the government's subsidy. It will also cut 90 percent of the automobile acquisition tax and automobile tax. With these measures, when buying an EV priced at 3 million yen, the subsidies from both the Japanese government and Kanagawa Prefecture will add up to 1.5 million yen. Moreover, the prefecture will give a 50 percent discount on parking fees at the five parking lots directly owned by the prefecture, and on expressway tolls when driving within Kanagawa using the electronic toll collection (ETC) system. These benefits will differentiate EVs from gasoline cars.

Kanagawa Prefecture will also encourage the private sector and local municipalities to install rapid chargers and 100 V/200 V electrical outlets, with the aim of establishing a more accessible environment for EV charging.


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- Newly Registered Low-emission Cars Reach 1.35 Million in Second Half of FY2002 (Related JFS article)
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- Low-Emission Vehicles Exceed the 5.7 Million Mark (Related JFS article)
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- Government to Extend 'Green' Vehicle Tax System (Related JFS article)
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Posted: 2008/09/07 05:31:58 PM