Message from the Mayor Six merits to choose Nagahama merit 1: Advantage as Nodal Point of Transportation merit 2: A Large Number of Business Partners merit 3: Support from the Nagahama Institute of Bio-Science and Technology merit 4: Attractive Incentives merit 5: Least Damage from Natural Disasters merit 6: Rich in Nature and History Industrial Locations in Nagahama Nagahama Science Park Nagahama Institute of Bio-Science and Technology Nagahama Bio Incubation Center Companies with outstanding technologies

< Grant Programs > Special Economic Development Zone Company Location Assistance [Shiga Prefecture] Eligible Business Businesses located in the Shiga Prefecture Special Economic Development Zone and in one of priority industry sectors stipulated in the Special Zone Plan Application Conditions Fixed asset investment (excluding land purchase costs) Large companies: 200 million yen or above Small/medium companies: 50 million yen or above Full time employees, within Shiga Prefecture, hired Large companies: 30 or more Small/medium companies, research institutes: 5 or more Handicapped employees: 2% or higher 30-49 employees →1 or more (Applicable to plants run by large companies only) 50-99 employees → 1 or more 100-149 employees → 2 or more Financial Assistance [Amount of grant] Within 10% of the fixed asset investment (excluding land purchase cost), or 30 million yen × number of full time employees. within the prefecture, hired whichever is less. [Upper limit] 3 billion yen (issued in 5 year installments) R&D and Plant With Testing Laboratory Location Assistance ［Shiga Prefecture］ Eligible Business When an R&D or Plant with testing lab is newly established or an existing building is expanded Application Conditions Fixed asset investment R&D Large companies: 200 million yen or above Small/medium companies: 50 million yen or above Plant with testing laboratory Large companies: 200 million yen or above (including 100 million yen or above for testing lab) Small/medium companies: 50 million yen or above (including 25 million yen or above for testing lab Full time employees, within Shiga Prefecture, hired R&D 5 or more Plant with testing lab Large companies: 20 or more Small/medium companies: 5 or more Financial Assistance [Amount of grant] Within 10% of the fixed asset investment (excluding land purchase cost) [Upper limit] 1 billion yen (when 5,000 million yen or above, issued 5 year installments) R&D Facility Location Assistance [Nagahama City] Eligible Business When an R&D facility is newly established or an existing building is expanded Application Conditions Fixed asset investment, including land, of 50 million yen or more Five or more employees increased before the commencement of operation Signing of the Environmental Preservation Agreement Financial Assistance [Amount of grant] 3 year grant provided in the amount equivalent to fixed asset tax (for 4 years if established within FY2006) 　 Testing Laboratory Location Assistance [Nagahama City] Eligible Business When a testing lab is newly established to or expanded, as an annex to a plant Application Conditions Fixed asset investment, including land, of 100 million yen or more Ten or more employees increased before the commencement of operation Signing of the Environmental Preservation Agreement Financial Assistance [Amount of grant] 3 year grant provided in the amount equivalent to fixed asset tax (amount involving building and depreciable property) Plant Location Assistance [Nagahama City] Eligible Business When a plant is newly established or an existing plant is expanded Application Conditions Fixed asset investment, including land, of 100 million yen or more Ten or more employees increased before the commencement of operation Signing of the Environmental Prevention Agreement Financial Assistance [Amount of grant] 3 year grant provided in the following fixed asset tax amount First year: 100% of tax Second year : 75% of tax Third year: 　50% of tax　 Employment Assistance [Nagahama City] Eligible Business When number of employees exceeds the specific number Application Conditions Fixed asset investment, including land, of 100 million yen or more Ten or more employees increased before the commencement of operation Signing of the Environmental Prevention Agreement Financial Assistance [Amount of grant] Grant will be provided according to the increase in the number of employees (Upper limit 100) Nagahama City: 100,000 yen/person Ika-gun, Higashi Azai-gun: 50,000 yen/person < Financing Programs > Special Economic Development Zone Capital Funds (Financing Program) [Shiga Prefecture] Eligible Business Small and medium enterprises conducting business in the industry sectors of the Special Zone Use Financing funds for equipment and operation to conduct business in the industry sectors of the Special Zone Classification Creation Self-directed Upper Limit Equipment and operating funds totaling 15 million yen (equivalent to funds on hand for businesses before the commencement of operation) Equipment and operating funds totaling 30 million yen Financial Assistance [Interest] 1.9% per annum [Credit guarantee] 0.65% per annum [Loan term] 7 years (incl. 2 years of deferment) [Interest] 1.9% per annum [Credit guarantee] 0.45-1.05% per annum [Loan term] 7 years (incl. 2 years of deferment) Bioindustry Start-up and Expansion Financing Program [Nagahama City] Eligible Business Start-up Funds: Small and medium businesses not stipulated in the Special Zone Plan Expansion Funds: Small and medium businesses stipulated in the Special Zone Plan Use Necessary equipment and operating funds for conducting joint development and research with the Nagahama Institute of Bio-Science and Technology Equipment and operating funds for expanding businesses that exceed the upper limit of the Prefectural Special Zone Financing (Self-directed) Classification Start-up Expansion Upper Limit 30 million yen Financial Assistance [Interest] 1.9% per annum [Credit guarantee] 0.5-1.2% per annum [Loan term] 7 years (incl. 2 years of deferment) Industry Location Promotion Financing Program [Shiga Prefecture] Eligible Location [Plants] Designated industrial locations [Research Institute (Natural Science)] Within prefecture Eligible Business Small and medium businesses, cooperative associations, etc. Use Equipment funds (Acquiring land, land formation, building plant or research lab, installing equipment, etc.) Upper Limit 200 million yen (Must be within 60% of the total expense) Financial Assistance [Interest] 2.15% per annum [Credit guarantee] 0.15-1.6% per annum [Loan term] 10 years (incl. 2 years of deferment) < Investment Program > Shiga Venture Start-up Capital Funds 　[Shiga Prefecture] Objective In order to boost the economy of Shiga Prefecture, utilize functions of private venture capital, invest and form venture enterprises focusing on businesses in the Shiga Special Zone. Upper limit 100 million yen < Tax Credit Incentives Program > Provided to businesses located in the Shiga Special Economic Development Zone and in priority industry sectors stipulated in the Special Zone Plan. Category Tax rate Tax Credit for Businesses in the Special Zone Real Property Acquisition Tax 4% (3%) 0% ←Exemption Eligibility Must be real property within the Special Zone acquired for business purposes by corporate and individual entities that meet the following conditions: A business entity in the Special Zone Land, buildings, depreciable assets used for the specified business in the Special Zone are exceeding 25 million yen At least 5 additional regular employees are hired for the industry sectors of the Special Zone Applicable Period Within the Special Zone Plan Period Category Tax rate Tax Credit for Businesses in the Special Zone Fixed Asset Tax (Prefectural) 1.4% 1st year of taxation 0% ←Exemption 2nd year of taxation 0% 3rd year of taxation 0.7% ←Nonuniform (Half) 4th year of taxation 0.7% 5th year of taxation 0.7% Eligibility Must be real property within the Special Zone acquired for business purposes by corporate and individual entities that meet the following conditions: A business entity in the Special Zone Land, buildings, depreciable assets used for the specified business in the Special Zone are exceeding 25 million yen At least 5 additional regular employees are hired for the industry sectors of the Special Zone Applicable Period When commencing new business within the Special Zone Plan Period, first 5 fiscal years of the operation Category Tax rate Tax Credit for Businesses in the Special Zone Business Tax Corporate business tax 5.0%, 7.3%, 9.6% *For general companies Individual Business Tax 5.0%, (4.0%, 3.0%) 1st business yr 0% ←Exemption 2nd business yr 0% 3rd business yr 1/2 of tax rate ←Nonuniform (Half) 4th business yr 1/2 of tax rate 5th business yr 1/2 of tax rate Eligibility Applicable to number of employees for corporate and individual entities in the Special Zone conducting business in the industry sectors of the Special Zone *Excludes pro forma standard taxation Applicable Period When commencing new business within the Special Zone Plan Period, first 5 years of the operation Strategy Project Promotion Section, Commerce and Promotion Division, Economy and Industry Department, Nagahama City Office, Shiga Prefecture 12-34 Takada-cho, Nagahama City, Shiga, Japan 526-8501 Tel.+81-749-65-6520 E-mail. project@city.nagahama.lg.jp

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