For FY2026 (Reiwa 8), Yamaguchi Prefecture's picture is "no prefectural purchase subsidy for individuals (the prefecture focuses on loans and charging infrastructure); you combine the national CEV subsidy with municipal top-ups such as Shunan City's." Shunan City is accepting applications for up to ¥100,000 for standard EVs and up to ¥50,000 for kei EVs/PHVs (half of eligible expenses). A grant decision under the national CEV subsidy is a prerequisite. Here is how to put the pieces together.
Think of Yamaguchi's EV Subsidies as a "Two-Story" Structure
CEV subsidy (the main player)
A national subsidy available to individuals and companies alike. For FY2026 it offers up to ¥1.3 million for EVs and is by far the largest amount.
Shunan City: accepting applications, ¥100,000 for standard EVs
Shunan City offers up to ¥100,000 for standard EVs and up to ¥50,000 for kei EVs/PHVs (1/2 of expenses). Iwakuni City and Hirao Town also have reported programs.
The prefecture focuses on loans and charging infrastructure
There is no prefecture-level purchase subsidy for individuals. What exists is a next-generation vehicle loan program and support for businesses.
[National] CEV Subsidy FY2026 (the Main Player)
The "up to ¥1.3 million" figure is a cap. The actual amount is set per model based on an assessment of the vehicle's environmental performance and other factors. Applications close once the budget runs out, and subsidized vehicles carry a mandatory holding period of four years in principle; disposing of the car within that period may require repayment. Check the exact subsidy 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.
[Yamaguchi Prefecture] No Prefectural Subsidy for Individuals (a Loan Program Exists)
Yamaguchi Prefecture's pages mainly present the national CEV subsidy and introduce fast-charger installations; there is no purchase subsidy for individuals. At the prefectural level there is a "next-generation vehicle acquisition loan program" (a loan, not a subsidy) and business support aimed at the automotive industry. Individuals combine the national CEV subsidy with municipal subsidies.
[Municipalities] Shunan City: Up to ¥100,000 for Standard EVs, ¥50,000 for Kei Vehicles
| Municipality | Status for FY2026 |
|---|---|
| Shunan City | Accepting applications: up to ¥100,000 for standard EVs, up to ¥50,000 for kei EVs/PHVs (1/2 of eligible expenses). Individuals with resident registration in the city; new vehicles that have received a national CEV grant decision; no delinquent municipal taxes; no prior receipt of the subsidy. First come, first served from April 1, 2026 |
| Iwakuni City / Hirao Town | Programs reported (check each official site for FY2026 amounts) |
Shunan City is a "standard-car-favoring" scheme: the subsidy for a standard EV is double that for a kei EV. Since a grant decision under the national CEV subsidy is a prerequisite, the procedure runs in the order national first, then city.
Also Check EV "Taxes" (Automobile Tax Relief)
Separately from subsidies, EVs are exempt from the environmental performance excise on automobile tax (the FY2026 tax reform also decided to abolish the levy itself), and the following year's automobile tax (type-based levy) is reduced by roughly 75% under the green tax special measure. For details, see EV taxes and the 2026 automobile tax reform.
Are Subsidies Taxable?
EV subsidies received by individuals 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. National and municipal subsidies combined usually fit within this, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently, so consult a tax accountant or similar professional.
What to Do Today
What to do today
- Check the national CEV subsidy amount for your candidate model in the Next Generation Vehicle Promotion Center's list (the figure for your specific car, not the "up to ¥1.3 million" cap)
- Search your municipality's official website for its EV subsidy; for Shunan City, since a national CEV grant decision is a prerequisite, check the remaining budget and application status
- Work backward from your delivery date to build an application schedule (check three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. What are the conditions for Shunan City's subsidy?
A. It covers individuals with resident registration in the city and new vehicles that have received a grant decision under the national CEV subsidy. The amounts are up to ¥100,000 for standard EVs and up to ¥50,000 for kei EVs/PHVs (1/2 of expenses); you must have no delinquent municipal taxes and must not have received this subsidy before.
Q. Do Yamaguchi City, Shimonoseki City, and other municipalities have subsidies?
A. As of August 2026, what we could confirm is Shunan City's program plus reported programs in Iwakuni City and Hirao Town. For the latest status in your municipality, search the official website for the municipality's name together with "EV subsidy."
Q. Is a new prefectural subsidy planned?
A. As of August 2026, no information on a new purchase subsidy for individuals in Yamaguchi Prefecture could be confirmed. Programs change year by year, so we recommend checking the prefectural and municipal official websites at the start of the fiscal year (April).
Q. Should I apply for the national CEV subsidy even on its own?
A. Yes. The national CEV subsidy is the main source of money (up to ¥1.3 million for EVs, ¥580,000 for kei EVs) and can be used whether or not a municipal subsidy exists. Applications close once the budget runs out, so applying early is the safe move.
References (Sources)
* Subsidy amounts, requirements, and application status are as of August 2026. Programs may close early depending on budget consumption. Always check each official website for the latest information before applying.