EV (electric vehicle) subsidies in Hyogo Prefecture shrank sharply in fiscal 2026 (Reiwa 8). Kobe City removed EVs from its subsidy for individuals (now FCVs only), and Himeji City's EV allocation ran out of budget at the end of May. There is no prefecture-level subsidy for individuals either (the program limited to the three Awaji Island cities also ended in May). Kasai City — the last one still open — also closed its ¥100,000 EV subsidy in August 2026 after hitting its budget cap, so individual EV purchase subsidies in Hyogo are effectively gone. What remains is the national CEV subsidy (up to ¥1.3 million for EVs). This article sorts out what you can still use amid the downsizing trend, based on fiscal 2026 information.
Update (September 20, 2026): Kasai City, the last municipality in Hyogo still accepting applications, closed its EV subsidy in August 2026 after reaching its budget cap. With Kobe (EVs excluded) and Himeji (closed in May), individual EV purchase subsidies in Hyogo are effectively gone.
Think of Hyogo's EV subsidies as a two-story structure
CEV subsidy (the main player)
A national subsidy available to both individuals and corporations. The FY2025 supplementary-budget round (registrations from April 2026) offers the largest amounts, such as up to 1.3 million yen for EVs.
Kobe excluded, Himeji ended, Kasai still open
Kobe City removed EVs from its subsidy from fiscal Reiwa 8. Himeji City's EV allocation ended in late May. Kasai City (¥100,000 for EVs) is still accepting applications.
No prefectural subsidy for individuals
There is no prefecture-wide subsidy for individuals. The program limited to the three Awaji Island cities (¥100,000 for EVs) also ended in May 2026 when its budget ran out.
[National] CEV Subsidy under the FY2025 Supplementary Budget (registrations from April 2026; the main pillar)
"Up to ¥1.3 million" is a cap. The subsidy amount is set per model based on evaluations such as the vehicle's environmental performance. Applications close once the budget runs out. On September 4 the secretariat announced that it expects to stop accepting applications around early to late December 2026 (applications are taken in order of arrival, and intake ends the day before the budget is reached; secretariat notice, PDF, in Japanese). A subsidized vehicle carries a retention obligation of four years in principle — if you dispose of it within that period, you may have to repay the subsidy. Check the exact amount for the car you plan to buy in the figures published by the Next Generation Vehicle Promotion Center.
For the full picture of the CEV subsidy and the situation nationwide, see our guide to EV subsidies in all 47 prefectures.
[Hyogo Prefecture] No prefectural subsidy for individuals (the Awaji-only program has also ended)
Hyogo Prefecture has no prefecture-wide EV purchase subsidy for individuals. The "electric vehicle and fuel cell vehicle adoption subsidy" listed on the prefecture's page (run by the Awaji Kuniumi Association) is limited to residents of Sumoto, Minamiawaji, and Awaji cities, and its EV allocation (¥100,000 per vehicle) reached its budget cap on May 25, 2026 and stopped accepting applications.
The basic pattern for individuals is the national CEV subsidy plus municipal programs, but as shown below, the municipal side has also been shrinking noticeably in fiscal 2026.
[Municipalities] Kobe excluded EVs, Himeji ended, Kasai is accepting applications
| City | Status in fiscal 2026 |
|---|---|
| Kobe | EVs excluded from the subsidy for individuals from fiscal Reiwa 8 (FCVs only continue), as stated on the official page |
| Himeji | EVs received one quarter of the national subsidy amount (capped at ¥100,000), but applications closed on May 29, 2026 when the budget was reached. The flat ¥500,000 for FCVs needs checking |
| Kasai | Closed in August 2026 (budget cap reached; city page updated August 12, 2026). Originally: ¥200,000 for FCVs, ¥100,000 for standard EVs, ¥50,000 for compact/mini EVs, ¥50,000 for V2H. No solar-panel bundling requirement. Applications run until February 28, 2027 (while budget lasts) |
For residents of Kobe, Himeji, and the Hanshin area, the practical core is the national CEV subsidy plus automobile tax relief. Municipalities that still have subsidies, such as Kasai, are first-come, first-served — call to confirm the remaining budget before you move.
Also check the taxes on EVs (automobile tax relief)
Separately from subsidies, the environmental performance levy of the automobile tax was abolished on March 31, 2026, and it is not charged on vehicles acquired on or after April 1, 2026 (Tokyo Metropolitan Government Bureau of Taxation, in Japanese). For EVs, the following year's automobile tax (ownership portion) is reduced by roughly 75% under the green tax special measure. For details, see our article on EV taxes and the 2026 automobile tax reform.
Are subsidies taxable?
EV subsidies received by an individual are treated as occasional income. Because there is a special deduction of ¥500,000 per year, no tax arises as long as your total occasional income for the year, including other items, stays at or below ¥500,000. Combining national and municipal subsidies usually stays within this, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently — consult a tax accountant or similar professional.
Summary
- In fiscal 2026, Hyogo Prefecture effectively has no EV purchase subsidy for individuals. What's available is the national CEV subsidy (up to ¥1.3 million for EVs) and a reduction in automobile tax.
- Kobe City excludes EVs from its subsidy starting in Reiwa 8 (2026), covering only FCVs. Himeji City's EV allocation closed on May 29, and Kasai City closed in August after hitting its budget cap.
- The prefecture's allocation limited to the three cities on Awaji Island (¥100,000 for EVs) also ended on May 25, 2026.
- The national CEV subsidy is expected to close for applications sometime between early and late December 2026. The ownership requirement is 4 years in principle.
- The subsidy counts as occasional income. It is not taxed if it falls within the annual ¥500,000 special deduction.
Reference links (sources)
* Subsidy amounts, requirements, and application status are as of August 2026. Programs may end early depending on budget consumption. Always check each official site for the latest information before applying.
