Housing loan tax credit: new homes occupied from 2024 must meet energy efficiency standards
Source material is a Japanese government announcement (in Japanese); this page is a summary.
For Japan's housing loan tax credit (住宅ローン控除), meeting certain energy efficiency standards became a requirement for newly built 'other housing' occupied on or after 1 January 2024 (Reiwa 6).
Key facts
| In force | Applies to homes occupied on or after 1 January 2024 (Reiwa 6) |
|---|---|
| What it covers | New builds of 'other housing', that is housing other than certified housing and similar categories (based on when the home is occupied) |
| Requirement | Meeting certain energy efficiency (省エネ) standards |
| Credit rate and period | Year-end loan balance and similar amounts × 0.7%; credit period of 13 years for new builds |
| Annual credit limit by category (new builds occupied in 2024 and 2025) | Certified housing 315,000 yen / ZEH-level energy-efficient housing 245,000 yen / housing meeting the energy efficiency standards 210,000 yen |
| Higher limits for individuals covered by the special rule | Certified housing 350,000 yen / ZEH level 315,000 yen / housing meeting the energy efficiency standards 280,000 yen |
| Other housing (not meeting the standards) | In principle not eligible for homes occupied in 2024 and 2025 (borrowing limit of 0 yen) |
| Transitional measure | Where building confirmation was obtained by 31 December 2023, or the home was built by 30 June 2024: borrowing limit of 20,000,000 yen and a 10-year credit period |
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Under Japan's housing loan tax credit (住宅ローン控除), 'other housing' (その他の住宅) — that is, housing other than certified housing and similar categories — must meet certain energy efficiency (省エネ) standards to qualify, for homes occupied on or after 1 January 2024 (Reiwa 6). The borrowing limit and the credit period differ by housing category (certified housing and similar, ZEH-level energy-efficient housing, housing meeting the energy efficiency standards, and other housing). The credit rate is 0.7% of the year-end loan balance and similar amounts, and the credit period for new builds is 13 years. 'Other housing' that does not meet the energy efficiency standards is in principle not eligible for homes occupied in 2024 and 2025. However, a transitional measure gives a borrowing limit of 20,000,000 yen and a 10-year credit period where building confirmation was obtained by 31 December 2023 or the home was built by 30 June 2024.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
Is a new home that does not meet the energy efficiency standards completely ineligible for the tax credit?
For homes occupied in 2024 and 2025 it is in principle not eligible. However, if building confirmation was obtained by 31 December 2023 or the home was built by 30 June 2024, the credit is available for 10 years with a borrowing limit of 20,000,000 yen (transitional measure). Check how this applies in your case in National Tax Agency Tax Answer No.1211-1 and with your local tax office.
Who are the 'individuals covered by the special rule' that get higher credit limits?
Under the National Tax Agency's definition, they are people under 40 who have a spouse, people aged 40 or over whose spouse is under 40, and people with a dependent relative under 19 (that is, young couples and child-rearing households). Their annual credit limits are higher in each category.
What are the credit rate and the credit period for new builds?
The credit rate is 0.7% of the year-end loan balance and similar amounts, and the credit period for new builds (certified housing and similar, ZEH-level energy-efficient housing, and housing meeting the energy efficiency standards) is 13 years.