# Can you invest in systems and software with the Monozukuri subsidy? — getting DX through a capital-investment-type program

> The Monozukuri subsidy is a capital-investment-type program, but purchasing and building dedicated software and information systems is eligible as 'machinery, equipment, and system-construction costs.' A mere system rollout, however, is a no-go: it demands new-product/new-service development and average annual growth in value-added. Based on the 23rd call, this article explains the eligible scope, the business plan, and the wage-increase requirement from the buyer's perspective.

- Published: 2026-07-07
- Author: 友田 陽大
- Tags: 補助金, DX, 中小企業, システム開発, ものづくり補助金
- URL: https://tomodahinata.com/en/blog/monozukuri-subsidy-system-investment-guide
- Category: DX with government subsidies
- Pillar guide: https://tomodahinata.com/en/blog/subsidy-system-development-outsourcing-complete-guide

## Key points

- The Monozukuri subsidy is 'capital-investment-type,' but purchasing, building, or leasing dedicated software and information systems used solely for the project is eligible as 'machinery, equipment, and system-construction costs' — DX and system investment are not outside the program
- The biggest gate is the single sentence 'a mere system rollout is not eligible.' Replacing a business system without accompanying new-product/new-service development does not, in the first place, qualify as an eligible project
- The spine of the review is the average annual growth rate of value-added (operating profit + labor costs + depreciation). The 23rd call sets the benchmark at 3.0% or more, and on top of that requires raising total payroll and the minimum wage; falling short risks a subsidy clawback
- Capital investment must be at least 500,000 yen (excluding tax) per unit, and costs other than machinery/equipment/system-construction are capped at 5 million yen in total — a 'software-only' plan needs care in how it's structured
- Efficiency-leaning investment goes to the IT Introduction Subsidy; capital/system investment that creates new products or services goes to the Monozukuri subsidy — this division is the starting point for a buyer's decision

---

**To put the conclusion first: you can invest in systems and software with the Monozukuri subsidy.** Because the name is "Monozukuri" (manufacturing) and the program requires capital investment of at least 500,000 yen per unit, buyers of system development tend to misread it as "this has nothing to do with us." But read the 23rd-call guidelines, and within the mandatory eligible-cost category "machinery, equipment, and system-construction costs" you'll find clearly written **the purchase, construction, or leasing of dedicated software and information systems used solely for the project.** In other words, DX and system investment are not outside the program — they are at its center.

That said, there is system investment that passes and system investment that does not. The dividing line is two things: "does it involve new-product/new-service development?" and "is the business plan one that grows value-added?" From the standpoint of someone who has built the substance of investments together with buyers on the front lines of contract development, this article breaks down, from the buyer's perspective, **how system investment is treated under a capital-investment-type program.** The figures are based on the 23rd call of Reiwa 8 (2026), but subsidy rates, caps, categories, and schedules change every year, so when you actually apply, please confirm in the latest call-for-applications guidelines.

## 1. First, the big picture — what does the Monozukuri subsidy support?

Its formal name is the "Monozukuri, Commerce, and Service Productivity Improvement Promotion Subsidy." It is a program that supports **capital investment** by SMEs to develop innovative new products and services or to improve production processes and service-delivery methods. The secretariat is the National Federation of Small Business Associations. The schedule for the 23rd call is as follows (from the guidelines).

| Item | 23rd call |
|---|---|
| Call opens | Fri, February 6, 2026 |
| Electronic application intake opens | Fri, April 3, 2026, 17:00 |
| Application deadline | Fri, May 8, 2026, 17:00 (strict) |
| Application method | Electronic application (requires a gBizID Prime) |

There are broadly two categories. The sense of the amounts is as follows (23rd call, Product & Service High-Value-Added category, by employee-size band).

| Application category | Subsidy cap | Subsidy rate |
|---|---|---|
| Product & Service High-Value-Added category (1–5 employees) | 7.5 million yen | SMEs 1/2; small businesses & rehabilitation businesses 2/3 |
| Same (6–20 employees) | 10 million yen | Same as above |
| Same (21–50 employees) | 15 million yen | Same as above |
| Same (51+ employees) | 25 million yen | Same as above |
| Global category | 30 million yen | SMEs 1/2; small businesses 2/3 |

The subsidy floor is 1 million yen in every case. There are also add-on measures such as the "special provision to raise the subsidy cap for substantial wage increases" and the "special provision to raise the subsidy rate for a minimum-wage increase (2/3 after the increase)." **The important thing here is that the subsidy rate is at most 2/3, and the rest is out of pocket.** If you build a 10-million-yen system, 3 million–5 million yen comes out of your own pocket. A subsidy is a tool that pushes an investment forward, not a tool that makes the investment free. Hold this cost sense alongside [the going rates for system development and how to read an estimate](/blog/system-development-cost-estimate-market-rate-guide).

## 2. What's inside "machinery, equipment, and system-construction costs" — how does software fit in?

There are eight eligible-cost categories. In the 23rd call, alongside "machinery, equipment, and system-construction costs (mandatory)," there are technology-introduction costs, expert costs, transportation costs, cloud-service usage costs, raw-material costs, outsourcing costs, and intellectual-property-related costs. The one relevant to system investment is the lead, mandatory category. The guidelines define machinery, equipment, and system-construction costs as the following three.

```text
機械装置・システム構築費（単価50万円以上の設備投資が必須）
  ① 専ら本事業のために使用される機械・装置、工具・器具の
     購入・製作・借用に要する経費
  ② 専ら本事業のために使用される専用ソフトウェア・情報システムの
     購入・構築・借用に要する経費        ← ここにシステム投資が入る
  ③ ①または②と一体で行う、改良・修繕・据付けに要する経費
```

② is the crux. **Purchasing, constructing, or leasing dedicated software and information systems is directly eligible.** "Leasing" refers to lease/rental, and it must be contracted after the grant decision, with costs incurred during the subsidized-project implementation period being eligible. Furthermore, a note in the guidelines states that "software and the like that contributes to improving the security of a product or service may be included in eligible costs, provided it accompanies a productivity improvement." In other words, investment in security design that underpins a new service is also within scope if it ties to a productivity improvement. This means that "defensive implementation" like [the reliability design with which I achieved zero double charges in production on a payment platform](/blog/retry-backoff-circuit-breaker-resilience-patterns-guide), too, has a defensible cost rationale if it's built in as part of a new service.

On the other hand, there are two structural constraints. If a buyer overlooks them, the plan collapses.

1. **Capital investment of at least 500,000 yen (excluding tax) per unit is mandatory.** The root of the program is "capital investment," so you must acquire machinery/equipment worth at least 500,000 yen per unit.
2. **Costs "other than" machinery/equipment/system-construction are capped at 5 million yen (excluding tax) in total** (10 million yen for the Global category). No matter how much you pile on outsourcing costs, cloud usage fees, expert costs, and the like, anything above this cap is not eligible.

When you have system construction built by an outsourcer, how the cap bites changes depending on whether the cost is classified as "machinery, equipment, and system-construction costs" or as "outsourcing costs." System construction that involves design and fabrication often falls on the machinery/equipment/system-construction side, but where the line is drawn is reviewed together with price-reasonableness supporting documents (an estimate plus a specification, etc.). **The more you structure a plan around "software only," the more the design of this classification and the 500,000-yen rule comes into play.**

## 3. The biggest gate — a "mere system rollout" fails

This is the heart of the matter, and also where much of the misunderstanding is born. In its description of eligible projects, the guidelines drive home the following.

> Under this subsidized program, anything that merely introduces machinery, systems, and the like without accompanying new-product/new-service development does not qualify as an eligible project.

In other words, **"I want to renew the core system we use now" or "I want to digitize operations" alone does not get you onto the Monozukuri subsidy's field.** Making existing operations more efficient or replacing them is a fine investment in itself, but it is not the "development of an innovative new product or service" that this program demands. In addition, developing a new service that is already fairly widespread among competitors is also treated as ineligible.

Illustrating this difference through the "shape" of real cases I've worked on looks like this (none of these guarantees an eligibility determination under the program; they are merely a contrast to grasp the outline of "investment that involves development" versus "investment that is only a rollout").

| Substance of the investment | The image the program envisions |
|---|---|
| Replacing the accounting/inventory system with a new product | Rollout only / no new service → unlikely to qualify |
| Digitizing an industry-specific distribution flow and launching a B2B-subscription new service that never existed before | Involves new-service development → close to what the program envisions |
| Adopting an off-the-shelf reservation tool | Rollout only → unlikely to qualify |
| Creating a new service-delivery method with proprietary demand forecasting/matching built in | Involves development → close to what the program envisions |

In the lumber-distribution DX for which I received the Minister of Economy, Trade and Industry Award, I rebuilt a distribution flow that had run on phone, fax, and Excel into a "new service-delivery method" — a B2B subscription SaaS that had never existed in the industry. The point is that it was not a rehash of existing operations but **the creation of a new way to deliver value.** This line between "rollout" and "development" is also the quality of the investment decision itself. Whether you should start from digitizing existing operations or design from a new service is continuous with the perspectives in [how to approach legacy-system modernization and how to think about the cost](/blog/legacy-system-modernization-2025-cliff-cost-guide) and [how to choose among in-house, outsourcing, and SaaS (build vs buy)](/blog/build-vs-buy-saas-vs-scratch-inhouse-vs-outsource-guide).

## 4. Value-added — the spine of the business plan

Even if you're eligible, the spine that gets you through review is the business plan, and the center of its numbers is **value-added.** The guidelines' definition is simple, expressed by the following formula.

```text
付加価値額 = 営業利益 + 人件費 + 減価償却費
```

Basic requirement ① of the 23rd call is to **bring the compound annual growth rate (CAGR) of the whole business's value-added to 3.0% or more over a business-plan period of 3 to 5 years after the subsidized project ends.** What's asked is not single-year revenue but whether you can paint a picture of lifting the company's earning power over multiple years. What I want to convey to buyers here is that the technical merit of a system investment and its persuasiveness in a business plan are separate things.

If you can't tell in numbers "how the sum of operating profit, labor costs, and depreciation builds up over 3 to 5 years thanks to this new service," then however modern the technology, the plan is weak. Put the other way, a buyer of system development should **weave the causal story "investment → new service → increase in value-added" into the design from the early stages of development.** It's also suggestive that depreciation is in the formula: investment in equipment and systems itself works to push value-added up. It's best to see the business plan not as an accounting essay but as part of investment design.

## 5. The wage-increase requirement and clawback risk — it's not "receive it and you're done"

It's easily overlooked, but in fact this is the heaviest part. On top of value-added, the basic requirements of the 23rd call include the following wage-increase requirements (each explicitly stating that **if the target is not met, there is an obligation to return the subsidy**).

| Basic requirement | 23rd-call benchmark |
|---|---|
| ① Increase in value-added | CAGR 3.0% or more for the whole business |
| ② Increase in total payroll | Total payroll per employee at CAGR 3.5% or more |
| ③ In-establishment minimum wage | A level at least 30 yen above the minimum wage of the prefecture where the project is carried out, every year |
| ④ Work–childcare balance (only for 21+ employees) | Formulating and publishing a General Employer Action Plan |

In other words, the subsidy is not something that completes the moment you receive it; it only holds **together with a management commitment over several years.** If you don't reach the targets, you may be required to return funds in proportion to the shortfall. It means the effect of the system investment needs to be designed as a business, right down to "whether it generates the wherewithal for wage increases."

This carries important meaning for buyers. If you pick a vendor on price alone and end things by having a system that merely runs delivered to you, it's hard to produce the management effect that meets these requirements. The reason I emphasize a way of building that uses generative AI as an accelerator while guaranteeing quality with human verification gates ultimately converges on this one point: "will the investment work on value-added and wage increases a few years out?" The clawback risk of a subsidy is continuous with the risk of ordering quality.

## 6. Choosing between this and the IT Introduction Subsidy — a buyer's decision frame

When you're unsure "which subsidy" for a system investment, the first question a buyer should raise is neither the subsidy rate nor the cap but **the purpose of the investment.** A rough sorting goes like this.

```text
Q1. その投資は「新しい製品・サービスを生む」ものか？
     ├─ YES →「開発を伴う設備・システム投資」→ ものづくり補助金が候補
     └─ NO（既存業務の効率化・デジタル化が主目的）
           └─ 既製ITツールの導入が中心 → IT導入補助金が素直

Q2. 3〜5年で付加価値額CAGR3%＋賃上げを約束できるか？
     ├─ 描ける → ものづくり補助金の事業計画に耐える
     └─ 描けない → 制度選定より先に、投資の事業設計を見直す
```

Roughly speaking, the first approximation is: **efficiency-leaning → the IT Introduction Subsidy; capital/system investment that creates new products or services → the Monozukuri subsidy.** However, both programs' categories, requirements, and subsidy rates are revised every year. The contents of each IT Introduction Subsidy category (standard, invoice, etc.) and the Monozukuri subsidy's value-added requirements — that year's call-for-applications guidelines are the only correct answer, and swallowing the figures from last year's articles or explainer sites whole is dangerous. The correct order for selecting a program is to work backward once the substance of the investment is settled.

## 7. A checklist buyers should nail down

Here's a summary of the points a buyer will want to confirm before entering development when considering the Monozukuri subsidy for a system investment.

- [ ] Does the investment involve "new-product/new-service development" rather than "replacing existing operations"?
- [ ] Does the plan include capital investment of at least 500,000 yen (excluding tax) per unit? (Capital investment is mandatory)
- [ ] Do costs "other than machinery/equipment/system-construction" — software, outsourcing, cloud usage, and so on — fit within the 5-million-yen (excluding tax) total cap?
- [ ] Can you explain that the dedicated software and information system is "used solely for the project"? (General-purpose PCs, office supplies, etc. are not eligible)
- [ ] Can you paint, in numbers, a business plan in which value-added (operating profit + labor costs + depreciation) grows at a CAGR of 3% or more?
- [ ] Can you commit to the wage-increase requirements for total payroll and the in-establishment minimum wage, understanding the clawback risk?
- [ ] Have you factored into your funding plan that even at a 2/3 subsidy rate, the remaining 1/3 is out of pocket?
- [ ] Have you confirmed the subsidy rate, caps, categories, and schedule in that year's **latest call-for-applications guidelines**?

Half of this checklist actually asks not "will the subsidy pass?" but "is the investment sound as a business?" — because the subsidy's requirements overlap, to a considerable degree, with the requirements of good investment design. Where those mesh, the subsidy becomes a powerful tailwind that lightens the investment by tens of percent.

## On my neutral position

Let me make my position clear at the end. **The author is not a registered IT introduction support vendor and does not file subsidy applications on your behalf.** This article is a neutral explanation meant to support the decision-making of buyers considering a system investment, and it does not solicit an application to any particular program. Even though the Monozukuri subsidy is a capital-investment-type program, it includes the purchase and construction of dedicated software and information systems squarely as eligible costs. That is exactly why the substance of the business is what's asked: "does it involve new-product/new-service development?" and "can you commit to value-added and wage increases for several years?" The program's details and the latest subsidy rates, caps, and schedules are revised each fiscal year, so always confirm in the official call-for-applications guidelines. On organizing the substance of the investment and judging whether the system you should build is sound, I can help with a free consultation / DX assessment.