Choosing a project for corporate furusato nozei starts with one rule. The project must sit in a regional revitalization plan approved by the national government. Within that rule, you have wide choice. This guide shows where to find projects, which municipalities to skip, and how to check timing and reporting before you commit.
Key facts (as of October 2026)
- Eligible projects: Projects in an approved regional revitalization plan. (Cabinet Office)
- Where to look: The Cabinet Office portal lists projects by field. Unlisted projects may also accept donations. (Cabinet Office portal)
- Excluded: Your head office’s local government, Tokyo Metropolis, and some wealthy cities. (Cabinet Office)
- Timing: In a Cabinet Office survey, 86% of projects received donations after the local assembly approved their budget. (Cabinet Office)
Which projects qualify?
Only projects in a regional revitalization plan (chiiki saisei keikaku, 地域再生計画) approved by the Prime Minister qualify. (Cabinet Office) A local government draws up the plan based on its local strategy. (Cabinet Office)
The range of fields is wide. Examples include job creation, migration to the region, marriage and child-rearing support, and town development. (Cabinet Office Q&A, plan approval)
Each project must have measurable targets (KPIs) and a review cycle. (Cabinet Office Q&A, plan approval) That helps you later, because the results can be checked.
Where do you find projects?
Start with the Cabinet Office portal. It has a list of projects seeking donations, sorted by field. (Cabinet Office portal)
The list is not complete. A project that is not listed may still accept a donation. The portal tells companies to ask the local government’s contact office directly. (Cabinet Office portal)
The Cabinet Office also publishes every approved plan. Local governments are asked to post their approved projects on their own websites. (Cabinet Office Q&A) As of April 1, 2026, 1,613 local governments had approved plans. (Cabinet Office)
Which municipalities are off the table?
Rule out three groups before you build a shortlist. (Cabinet Office)
- Your head office’s local government. This means where your main office is located under local tax law. (Cabinet Office Q&A)
- Tokyo Metropolis.
- Some wealthy cities. These are cities that receive no local allocation tax and sit in built-up areas of the three major metropolitan regions.
The head office rule depends on who runs the project. (Cabinet Office Q&A)
| Who runs the project | Excluded donors |
|---|---|
| A city, town, or village | Companies with a head office in that municipality only |
| A prefecture | All companies with a head office anywhere in that prefecture |
Say your head office is in City A, in Prefecture B. Projects run by City A or by Prefecture B don’t qualify for you. A project run by City C, also in Prefecture B, can qualify.
A checklist for choosing a project
Use these points to compare your shortlist. They come from the scheme’s rules and the Cabinet Office’s own survey.
| Check | What to look for |
|---|---|
| Fit with your themes | A field that matches your business purpose or ESG priorities, such as education, the environment, or local industry |
| Eligibility | The project is in an approved plan, and the local government is not excluded for your company |
| Timing | Whether the local assembly has approved the project budget, and when the donation can be received |
| Results and reporting | Clear KPIs, and how the local government will report results to you |
| Publicity | Whether you want your company name and amount published |
| Contracts | Any business relationship with the local government goes through a fair process |
The Cabinet Office lists ESG and the SDGs among the benefits companies can gain. This includes supporting projects outside your own business field. (Cabinet Office Q&A)
Why does local budget timing matter?
Most donations follow the local budget cycle. A Cabinet Office survey looked at donations received in fiscal year 2023. In 86% of projects, the money arrived after the assembly approved the project budget. That was 4,386 of 5,118 projects, excluding in-kind donations. (Cabinet Office)
Donating before budget approval is possible, but it adds a reporting step. In that case, the local government must report to the national government soon after receiving it. (Cabinet Office Q&A)
Two more timing rules matter.
- Plan approval comes first. A local government can receive donations once its plan is approved. (Cabinet Office Q&A)
- Your tax year. The credit applies to the business year in which you actually donate. (Cabinet Office Q&A)
Ask each local government about its budget schedule early. To see how the tax effect changes with your figures, read Corporate Furusato Nozei Tax Effect: Worked Examples.
What will the municipality report back?
Expect a report on results. The Cabinet Office Q&A asks local governments to tell donor companies the results of the project review. The method is up to each local government. (Cabinet Office Q&A)
Transparency is part of the scheme. Local governments are asked to report donor names, amounts, and results to their assemblies. (Cabinet Office Q&A) Ask how they will do this before you choose.
What can your company expect, and what is banned?
Your company gets the tax effect and public recognition. It gets no economic benefit in return. (Cabinet Office)
Allowed:
- The local government introduces your company as a donor on its website or in newsletters. (Cabinet Office)
- Contracts with the local government, if they go through a fair process. (Cabinet Office)
Local governments publish donor names and amounts unless the company asks not to. (Cabinet Office Q&A) In the survey, 91% of projects published donor names at least in part. (Cabinet Office)
Banned as a return for the donation: (Cabinet Office Q&A)
- Subsidies, or loans at a lower interest rate than others get.
- Special treatment in bidding or permits.
- Property sold below market price without a good reason.
- Gift cards or other items easily turned into cash, or exclusive use of a funded facility.
Can you send staff instead of only money?
Yes. Under the talent dispatch type (jinzai haken-gata, 人材派遣型), your company sends an employee to a local government. It also donates an amount that covers their salary. (Cabinet Office) The portal also has material on a side-job version. (Cabinet Office portal)
This can suit companies that want staff to build regional ties or skills. Check the details with the local government.
How do you approach a municipality?
Contact the local government’s office in charge of corporate furusato nozei. Then follow these steps.
- Confirm the project. Check that it is in an approved plan and that your company is not excluded.
- Ask about timing. Find out where the project budget stands and when they can receive your donation.
- Agree on publicity. Tell them whether you want your name and amount published.
- Send a donation offer. The Cabinet Office provides a reference form for the offer (寄附の申し出). (Cabinet Office Q&A)
- Keep the receipt. The local government issues a receipt in an official format. You need it for your tax filings. (Cabinet Office Q&A)
For the basic rules and the full process, see Corporate Furusato Nozei Guide.
FAQ
Can we only donate to projects on the Cabinet Office list?
No. Projects not on the list may also accept donations. Ask the local government directly. (Cabinet Office portal)
Can we donate to a project in our head office’s prefecture?
It depends on who runs the project. A project run by another city in your prefecture can qualify. A project run by the prefecture itself does not. (Cabinet Office Q&A)
When in the year should we donate?
Most donations are received after the local budget is approved. Your tax credit applies to the business year in which you donate. Discuss both with the local government and your tax accountant. (Cabinet Office)
Will our company name be made public?
Usually, yes. Local governments publish donor names and amounts unless the company asks not to. (Cabinet Office Q&A)
Can we win contracts from the municipality after donating?
Contracts are allowed if they go through a fair process. Special treatment in bidding because of the donation is banned. (Cabinet Office Q&A)
Is there a minimum donation per project?
Yes. The scheme covers donations of ¥100,000 or more. (Cabinet Office)
This article is general information, not tax or legal advice. Ask a licensed tax accountant about the tax effect for your company. Information is as of October 2026. Sources: Cabinet Office: Corporate furusato nozei portal, Cabinet Office: Overview (April 1, 2026), Cabinet Office: 2025 tax reform and survey, Cabinet Office: Q&A, project implementation (15th ed.), Cabinet Office: Q&A, plan approval.