Provides clear explanations about tax reduction systems and subsidies that can be utilized for housing renovations, including how they can be used in combination.
The Housing Bureau of the Ministry of Land, Infrastructure, Transport and Tourism has published the "Complete Guide to Housing Renovation Support Systems" to promote the utilization of renovation support systems. This guide consists of two types of brochures, one for consumers and one for businesses, aiming to promote renovations by providing easy-to-understand explanations of complex support systems. Particularly noteworthy is that even if subsidies are received, tax reduction systems may still be applicable if requirements are met, emphasizing that renovations can be implemented more economically through the combined use of both systems.
The tax reduction systems introduce two schemes: housing loan tax deduction and renovation promotion tax system. For housing loan tax deduction, when taking out a loan of 10 years or more for specific renovations (extensions, reconstructions, major repairs, major remodeling, etc.), income tax and resident tax reductions of up to 1.4 million yen may be possible. On the other hand, the renovation promotion tax system offers a wide range of eligible categories including energy-saving renovations and barrier-free renovations, and can be applied whether or not a loan is taken out.
Features of the renovation promotion tax system include income tax reduction measures of up to 600,000-800,000 yen, and property tax reduction measures equivalent to 1/3 to 2/3 of the property tax amount. Additionally, seismic renovations have the advantage of being combinable with housing loan tax deductions.
The eligibility requirements for tax reduction systems are organized into four categories: ① tax reduction applicants, ② housing, ③ construction content, and ④ construction amount. The website provides a two-stage simulation function, first allowing users to check applicable tax systems based on conditions ① and ②, then input conditions ③ and ④ to calculate estimated tax reduction amounts.
The article concludes that through promotion and utilization of renovation support systems, housing quality improvement and longer service life will be achieved, contributing to the enhancement of citizens" living standards.