Governor Yoshihiro Murai of Miyagi Prefecture announced at the regular meeting of the prefectural assembly in September 2022 that he would enact an ordinance that would impose a tax on businesses operators that carve out forests in the prefecture to newly construct RE power generation facilities. The purpose of taxation is to encourage the installation in suitable areas other than forests by creating a situation where the economic burden becomes heavier due to taxation. It is planned to introduce a new tax in April 2024, assuming power generation by solar, wind, biomass, etc.

The new tax will be a local discretionary tax that does not limit its use, and in the future, a council with experts will be set up to discuss the definition of “forest” areas, tax bases, application to existing facilities, tax rates and other details. However, it is reported that even within the “forest” areas designated by the prefecture, the tax will be exempted for installations in the “RE promotion zones” defined by the municipalities based on the revised Law Concerning the Promotion of the Measures to Cope with Global Warming. According to the prefecture, this is the first ordinance in Japan to encourage the location of RE power generation facilities using the taxation system.　

The introduction of the new tax is in response to the troubles that have occurred in various parts of the prefecture over solar and wind power generation facilities. The prefecture will enact an ordinance on solar power generation facilities that includes a ban on power generation projects in some areas, and an ordinance on prefectural environmental impact assessment that includes expansion of on-site inspections by the prefecture on Oct 1, 2022. Under the ordinances, new solar power generation facilities with an output of 50kW or more will be subject to regulations, with the exemption of rooftop PV systems, etc. In addition to restrictions on installation in areas where there is a risk of landslides, the implementation of explanations to residents, the submission of project plans, maintenance, inspection, and management plans, etc. will become mandatory, but the concert of residents remains only an obligation to make efforts. Governor Murai explained that there is a limit to the tightening of the regulations by local governments, which led to the decision to introduce the new tax.