Guide for enterprises establishing in Ishikawa

(1) Subsidy for the promotion of creative industries

Object		New construction or extension of (1) - (3)
		(1)Advanced industrial facilities	(2)Plants using airports or harbors	(3)Plants with original technology
		R&D, headquarters, controlling or backup facilities	Plants which use airports or harbors for international distribution	Plants manufacturing original products with a high market share or having highly advanced technology
Requirements	Investment capital	¥300 million or more
	Full-time employees	10 or more		20 or more
Amount of subsidy	Formula	20% or less of investment	10% or less of investment
	Limit	¥1.5 billion

*The amount of the subsidy is determined according to the company's contribution to the local economy, within the limit

(2)Subsidy to promote location of enterprises that increase employment

Object			Construction or extension of manufacturer's plants, laboratories of natural science, offices of software-related business, artistic design and machine design, and distribution and processing facilities
Requirements	Location		Under- populated areas and semi- under- populated areas	Noto area excluding under- populated and semi-under- populated areas	Kaga area excluding under-populated and semi-under- populated areas
	Investment Amount	Newly-established	¥100 million or more
		Expanding	¥100 million or more	¥300 million or more (In case of private land, the amount is ¥500 million or more)	¥500 million or more
	Permanent Staff (Newly-employed)		5 or more	10 or more	15 or more
Amount of subsidy	Formula and limit		Investment amount × subsidy rate (figures below) + number of Newly-employed Permanent Staff × ¥500,000 Limit: For Newly established: ¥500 million (waiver ¥1billion (Total of ¥2billion including the municipalities share)) , For Expanding: ¥200 million (waiver ¥500 million(Total of ¥1billion including the municipalities share))
	Subsidy rate	New -established	20%	10%	5%
		Expanding	10%	5%	2.5%

Newly-Established Business point to new locations outside the prefecture.

The waiver is applicable only to those businesses that invest an amount of more than ¥10 billion and employ more than 100 employees (in case of Expanding Businesses ,either of these conditions has to be fulfilled), and recieve the subsidies from the municipality .Also,the aid
from the prefecture should not exceed the subsidy from the municipality.

Expanding Businesses can be established in private lands only when the municipality gives subsidies .Also,the amount of aid is limited to the lower amount of the half of above mentioned amount and the amount of the subsidies.

Among offices that deal in Information Processing and Applied Services, Call centers that have a staff of 100 or more and begin location of their office .
For newly-established places, the subsidy rate (for all areas )is 20% for lightning-protection facilities and/or high-level pollution-prevention facilities.

Underpopulated Areas: former Nakajima and Notojima town in Nanao,Wajima,Suzu,former Yoshinodani and Torigoe and Shiramine village in Hakusan,former Yamanaka in Kaga,Shika,Togi,Anamizu,Noto
Semi-underpopulated Areas : former Tatsuruhama town in Nanao,former Kawachi and Oguchi village in Hakusan,Hodatsushimizu,Nakanoto.

(3)Subsidy for laboratories in Ishikawa Science Park

Object			New construction and extension of laboratories in Ishikawa Science Park
Requirements	Investment capital		¥100 million or more
	New local employees + employees from outside the prefecture		5 or more
Amount of subsidy	Formula and limit		Investment amount × subsidy rate(figures below) + number of newly-employed permanent staff × ¥500,000 (Limit: New construction: ¥500 million, Extension: ¥200 million)
	Subsidy rate	New local employees	5 - 14	15 or more
		New construction	10%	15%
		Extension	7.5%	12.5%

*This subsidy cannot be applied when subsidy (2) is applied.

When both (1) and (2) or both (1) and (3) are applied, the subsidy will be ¥3.5 billion at maximum.

Under-populated areas:	former Nakajima and Notojima town in Nanao,Wajima,Suzu,former Yoshinodani and Torigoe and Shiramine village in Hakusan,former Yamanaka in Kaga,Togi,Anamizu,Noto
Semi-under-populated areas:	former Tatsuruhama town in Nanao,former Kawachi and Oguchi village in Hakusan,Hodatsushimizu,Nakanoto.

Financing for promoting the location of enterprises

Object

(1)	New construction of an enterprise from outside the prefecture
(2)	Construction at a site designated by the prefecture (Agro-industrial areas, areas suitable for plants, industrial complex managed by the prefecture or municipality)
(3)	Enterprises with 10 or more new local employees (5 or more in under-populated areas)
(4)	Enterprises that have a repercussion effect on the local economy

Financing

(1)	Objects of expenses Expenses for acquiring land, buildings and equipment (investment in capital assets)
(2)	Limit 2/3 of invested capital assets (limit: ¥500 million)
(3)	Interest rate Decided by the Governor in case the period of financing is less than 10 years,fixed rate of 1.8% , in case the period of financing is more than 10 years, fluctuating rate of 1.45%(as of 1st March 2006)
(4)	Term Up to 10 or 15years (including 2 years without payment)

Ex.1 Construction at an industrial site (under-populated area) in Ishikawa

Investment model (Initial investment: ¥700 million)
Land (approx. 1ha)	¥150 million
Building/Facility	¥550 million
Permanent Staff (Newly-employed)	20

1) Subsidy for creative industries
If designated as a plant with original technology:
¥700 million × 10%= ¥70 million - A
2) Subsidy for enterprises that increase employment
¥700 million × 20% + ¥500,000 ×20= ¥150 million - B
Total subsidy (A+B) = ¥220 million

3)Financing for promotion of locating enterprises
¥700 million × 2/3 ¥460 million

* Land costs can be compensated only with subsidy 2).

Inquiries:Industrial Location Policy Division, Commerce, Industry and Labor Department, Ishikawa Prefectural Government
tel:076-225-1517 fax:076-225-1518 e-mail:e190100@pref.ishikawa.jp