EV (electric vehicle) subsidies in Hyogo Prefecture shrank sharply in fiscal 2026 (Reiwa 8). Kobe City removed EVs from its subsidy for individuals (now FCVs only), and Himeji City's EV allocation ran out of budget at the end of May. There is no prefecture-level subsidy for individuals either (the program limited to the three Awaji Island cities also ended in May). Even so, Kasai City is still accepting applications for its ¥100,000 EV subsidy, and the national CEV subsidy (up to ¥1.3 million for EVs) remains in place. This article sorts out what you can still use amid the downsizing trend, based on fiscal 2026 information.
Think of Hyogo's EV subsidies as a two-story structure
CEV subsidy (the main player)
A national subsidy available to both individuals and companies. In fiscal 2026 it is the largest amount, such as up to ¥1.3 million for EVs.
Kobe excluded, Himeji ended, Kasai still open
Kobe City removed EVs from its subsidy from fiscal Reiwa 8. Himeji City's EV allocation ended in late May. Kasai City (¥100,000 for EVs) is still accepting applications.
No prefectural subsidy for individuals
There is no prefecture-wide subsidy for individuals. The program limited to the three Awaji Island cities (¥100,000 for EVs) also ended in May 2026 when its budget ran out.
[National] CEV subsidy for fiscal 2026 (the main player)
"Up to ¥1.3 million" is a cap. The subsidy amount is set per model based on evaluations such as the vehicle's environmental performance. Applications close once the budget runs out, and a subsidized vehicle carries a retention obligation of four years in principle — if you dispose of it within that period, you may have to repay the subsidy. Check the exact amount for the car you plan to buy in the figures published by the Next Generation Vehicle Promotion Center.
For the full picture of the CEV subsidy and the situation nationwide, see our guide to EV subsidies in all 47 prefectures.
[Hyogo Prefecture] No prefectural subsidy for individuals (the Awaji-only program has also ended)
Hyogo Prefecture has no prefecture-wide EV purchase subsidy for individuals. The "electric vehicle and fuel cell vehicle adoption subsidy" listed on the prefecture's page (run by the Awaji Kuniumi Association) is limited to residents of Sumoto, Minamiawaji, and Awaji cities, and its EV allocation (¥100,000 per vehicle) reached its budget cap on May 25, 2026 and stopped accepting applications.
The basic pattern for individuals is the national CEV subsidy plus municipal programs, but as shown below, the municipal side has also been shrinking noticeably in fiscal 2026.
[Municipalities] Kobe excluded EVs, Himeji ended, Kasai is accepting applications
| City | Status in fiscal 2026 |
|---|---|
| Kobe | EVs excluded from the subsidy for individuals from fiscal Reiwa 8 (FCVs only continue), as stated on the official page |
| Himeji | EVs received one quarter of the national subsidy amount (capped at ¥100,000), but applications closed on May 29, 2026 when the budget was reached. The flat ¥500,000 for FCVs needs checking |
| Kasai | Accepting applications: ¥200,000 for FCVs, ¥100,000 for standard EVs, ¥50,000 for compact/mini EVs, ¥50,000 for V2H. No solar-panel bundling requirement. Applications run until February 28, 2027 (while budget lasts) |
For residents of Kobe, Himeji, and the Hanshin area, the practical core is the national CEV subsidy plus automobile tax relief. Municipalities that still have subsidies, such as Kasai, are first-come, first-served — call to confirm the remaining budget before you move.
Also check the taxes on EVs (automobile tax relief)
Separately from subsidies, EVs are exempt from the environmental performance excise on automobile tax (the fiscal 2026 tax reform has also decided to abolish the levy itself), and the following year's automobile tax (ownership portion) is reduced by roughly 75% under the green tax special measure. For details, see our article on EV taxes and the 2026 automobile tax reform.
Are subsidies taxable?
EV subsidies received by an individual are treated as occasional income. Because there is a special deduction of ¥500,000 per year, no tax arises as long as your total occasional income for the year, including other items, stays at or below ¥500,000. Combining national and municipal subsidies usually stays within this, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently — consult a tax accountant or similar professional.
What to do today
What to do today
- Check the national CEV subsidy amount for your candidate models in the Next Generation Vehicle Promotion Center's list (the amount for your specific car, not the "up to ¥1.3 million" headline)
- Search your municipality's official site for "EV 補助金" (EV subsidy) — programs in Hyogo keep shrinking or ending, so check the remaining budget and application status
- Build your application schedule backward from the delivery date (check three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. I live in Kobe City. Is there an EV subsidy?
A. From fiscal Reiwa 8, Kobe City limited its subsidy for individuals to FCVs (fuel cell vehicles) only, and EVs are no longer eligible. For Kobe residents buying an EV, the national CEV subsidy and automobile tax relief are the core support.
Q. Can I still apply for Himeji City's EV subsidy?
A. The fiscal 2026 EV allocation closed on May 29 when the budget was reached. Check the city's official site for whether next fiscal year's round will run.
Q. Are there any municipalities in Hyogo still accepting applications?
A. Kasai City is still accepting applications for ¥100,000 for standard EVs, ¥50,000 for mini EVs, and ¥50,000 for V2H (as of August 2026, first-come, first-served). For Kasai and all other municipalities, always confirm the remaining budget before applying.
Q. I live on Awaji Island. Can I use the prefectural program?
A. The ¥100,000 EV allocation limited to the three Awaji Island cities (Sumoto, Minamiawaji, and Awaji) stopped accepting applications on May 25, 2026. Check the Kuniumi Association and prefectural pages for whether next fiscal year's round will run.
Reference links (sources)
* Subsidy amounts, requirements, and application status are as of August 2026. Programs may end early depending on budget consumption. Always check each official site for the latest information before applying.