Japan plans to offer new tax credits to businesses investing in green technology and digital infrastructure, according to documents obtained by Bloomberg.

The tax credits, which are being proposed by the ruling party, will allow firms to reduce their corporate tax bills by as much as 20%, the documents show.

Some 10% of investment in equipment that helps reduce carbon emissions will be allowed as a tax credit under the plan. Firms will also be allowed to take 5% of capital spending on digital infrastructure as a credit.

The new incentives are set to go into effect in the fiscal year starting in April, according to the document.

Revisions also include a two-year extension of tax breaks for environmentally friendly cars.

 - Bloomberg