Japan’s Ministry of Economy, Trade and Industry is revamping its film and TV tax incentive with multi-year subsidies to attract more collaboration with international production companies, including ones making animation. 

Previously, producers could only get reimbursed for expenses reported over a strict timeline, from March 27, 2025 to January 31, 2026. This was true even for long-term projects that ran beyond this period. The revamped incentives mean expenses can come from up to two fiscal years, which will make it easier for projects shooting outside of the narrow nine-month window. 

The maximum amount of the subsidy is 50% of eligible expenses, with a limit of US$6.6 million. To qualify, Japanese productions companies working on a TV show or film must work alongside an overseas proco. Work must be done in Japan, but have crew from overseas. The project needs to spend at least US$3.3 million of its production costs in Japan; or it can be scheduled to be released in 10 or more countries and territories, with US$1.3 million spent on production in Japan.

The new framework is expected to come into effect in late spring next year. 

This incentive was first rolled out in 2023, and has supported projects including the new dramedy Rental Family, as well as Japanese-US co-productions The Smashing Machine and season two of Monarch: Legacy of Monsters (both from TOHO). 

The Japan Film Commission will coordinate the initiative alongside the Visual Industry Promotion Organization, which helps international businesses connect with Japanese companies.