Local governments in Japan provide financial support and tax incentives for CASBEE certification.

In addition, the National Tax Agency has established a special tax-credit system for specified home improvements. Under this system, when an individual undertakes general heat insulation repair work, (“General Energy-Saving Repair Work”) on a residential house owned by the individual, the individual will be eligible for a grant of a tax credit if the house becomes energy efficient as a result of the General Energy-Saving Repair Work. In addition, the National Tax Agency also established a tax-credit system that provides for a special tax credit for specified residential renovations under certain conditions when an individual has made general heat-insulation modifications to their residential house, and the house is used for their own residential purpose between 1 April 2014 and 31 December 2023.

In the Tax Reform Bill of 2024, a decision was made to extend this system until the end of 2025.

In addition, the Low Carbon Building Certification System provides tax and financing incentives for buildings that have been certified as low-carbon buildings.

Furthermore, the Tokyo Metropolitan Government is granting corporate enterprise tax exemptions to corporations that have installed energy-saving and renewable energy facilities. To be eligible for this program, corporations must: (1) have a capital of JPY 100 million or less; and (2) file a specific report (e.g., a global warming action report) with the Bureau of Environment. If a company that meets these requirements installs energy-saving equipment designated by the Tokyo Metropolitan Government, one-half of the installation cost will be exempted from corporate enterprise tax for that year. This program is applicable to each fiscal year ending on or before 30 March 2026.