In Iwate Prefecture, the picture for FY2026 (Reiwa 8) is: the prefecture runs only a "full-set" program for businesses, and Morioka City's 100,000 yen for individuals has exhausted its budget. The prefecture's business program has an unusual requirement — rare even nationwide — that you install solar panels, a storage battery, an EV, and charge-discharge equipment all together (20,000 yen/kWh for the EV). For individual vehicle purchases, the national CEV subsidy (up to 1.3 million yen for EVs) is the main pillar. Here is the current situation and how to prepare for next fiscal year.
Think of Iwate's EV Subsidies as a "Two-Story" Structure
CEV subsidy (the main pillar)
A national subsidy available to both individuals and corporations. The FY2025 supplementary-budget round (registrations from April 2026) offers the largest amounts, such as up to 1.3 million yen for EVs.
Morioka City's 100,000 yen has run out
Morioka City's 100,000 yen for EVs (pure EVs only, application required before delivery) closed for FY Reiwa 8 after reaching its budget.
The prefecture runs a full-set program for businesses
Requires installing solar, a storage battery, an EV, and charge-discharge equipment all together (20,000 yen/kWh for the EV). For small and medium-sized businesses.
[National] CEV Subsidy under the FY2025 Supplementary Budget (registrations from April 2026; the main pillar)
"Up to 1.3 million yen" is a cap. The actual amount is set per model based on the vehicle's environmental performance and other criteria. Applications close once the budget runs out. On September 4 the secretariat announced that it expects to stop accepting applications around early to late December 2026 (applications are taken in order of arrival, and intake ends the day before the budget is reached; secretariat notice, PDF, in Japanese). Subsidized vehicles carry a mandatory holding period of 4 years in principle — disposing of the car within that period may require repaying the subsidy. Check the exact amount for your model 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.
[Iwate Prefecture] The Prefectural Subsidy Is a "Solar + Battery + EV + Charge-Discharge" Full Set, for Businesses Only
Iwate Prefecture's "EV Introduction Subsidy Program for Businesses" is aimed at small and medium-sized businesses in the prefecture, with an unusual full-set requirement: you must install solar panels, a storage battery, an EV (or PHV), and charge-discharge equipment all together. EVs and PHVs are subsidized at 20,000 yen/kWh, and applications are accepted until October 30, 2026 (a small budget of 4.1 million yen). Individuals are not eligible.
[Municipalities] Morioka City's 100,000 Yen Has Closed
| City | FY2026 status |
|---|---|
| Morioka City | Offered 100,000 yen per EV (individuals only, PHVs not eligible, application required before delivery), but the FY Reiwa 8 intake has closed after reaching its budget |
Morioka City's "apply before delivery" rule is likely to remain in place next fiscal year as well. If you are aiming for next year's round, make it a strict rule to check the application flow before signing a contract, and only then place your order. For now, what individuals can use are the national CEV subsidy (up to 1.3 million yen for EVs) and the automobile tax reductions.
Also Check the "Taxes" on EVs (Automobile Tax Reductions)
Separately from subsidies, the environmental performance levy of the automobile tax was abolished on March 31, 2026, and it is not charged on vehicles acquired on or after April 1, 2026 (Tokyo Metropolitan Government Bureau of Taxation, in Japanese). For EVs, the following year's automobile tax (type-based levy) 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 individuals are treated as occasional income. Because there is a special deduction of 500,000 yen per year, you owe no tax as long as your total occasional income for the year, including other items, stays at or below 500,000 yen. Even combining national and municipal subsidies usually stays within this range, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently, so consult a tax accountant.
Summary
- For individuals' vehicles, the national CEV subsidy is the core. EVs get up to ¥1,300,000, and applications are expected to close around early to late December 2026 (Reiwa 8).
- Morioka City's ¥100,000 per EV closed for fiscal 2026 (Reiwa 8) after reaching its budget. Applying before delivery was a requirement.
- The prefectural subsidy is for SMEs and others, and requires installing solar, a battery, an EV and charge/discharge equipment. EVs get ¥20,000/kWh, with applications until October 30, 2026.
- The environmental performance levy of the automobile tax was abolished on March 31, 2026 (Reiwa 8). The next year's automobile tax on an EV is reduced by roughly 75%.
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* Subsidy amounts, requirements, and acceptance status are as of August 2026. Programs may close early depending on how quickly budgets are used up. Always check the latest information on each official website before applying.