diff --git a/build.xml b/build.xml
index feadab0b9b8..74e4a20b81f 100644
--- a/build.xml
+++ b/build.xml
@@ -844,17 +844,21 @@
     
     <target name="annotation-processing">
         <cleandir dir="${output}/classes/annotation-processing"/>
-        <javac2 destdir="${output}/classes/annotation-processing" debug="true" debuglevel="lines,vars,source" 
+
+        <property environment="env"/>
+
+        <javac2 destdir="${output}/classes/annotation-processing" debug="true" debuglevel="lines,vars,source"
                 includeAntRuntime="false" source="${java.target}" target="${java.target}">
             <withKotlin modulename="annotation-processing">
                 <compilerarg value="-version"/>
             </withKotlin>
             <skip pattern="kotlin/Metadata"/>
             <src>
-                <pathelement path="plugins/annotation-processing/src"/>
-                <pathelement path="plugins/java-model-wrappers/src"/>
+                <pathelement path="plugins/kapt3/src"/>
             </src>
             <classpath>
+                <!-- JAVA_HOME is set in annotation-processing-under-jdk8 -->
+                <pathelement path="${env.JAVA_HOME}/lib/tools.jar"/>
                 <pathelement path="${idea.sdk}/core/intellij-core.jar"/>
                 <pathelement path="${kotlin-home}/lib/kotlin-compiler.jar"/>
                 <pathelement path="${bootstrap.runtime}"/>
@@ -866,7 +870,7 @@
         <jar destfile="${kotlin-home}/lib/kotlin-annotation-processing.jar">
             <fileset dir="${output}/classes/annotation-processing"/>
             <zipfileset file="${kotlin-home}/build.txt" prefix="META-INF"/>
-            <fileset dir="${basedir}/plugins/annotation-processing/src" includes="META-INF/services/**"/>
+            <fileset dir="${basedir}/plugins/kapt3/src" includes="META-INF/services/**"/>
         </jar>
     </target>
 
diff --git a/compiler/compiler.pro b/compiler/compiler.pro
index cb4265b14ec..86fa9d6706a 100644
--- a/compiler/compiler.pro
+++ b/compiler/compiler.pro
@@ -167,6 +167,21 @@ messages/**)
     *** ASM5;
 }
 
+-keep class org.jetbrains.org.objectweb.asm.tree.AnnotationNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.ClassNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.LocalVariableNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.MethodNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.FieldNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.ParameterNode { *; }
+-keep class org.jetbrains.org.objectweb.asm.tree.TypeAnnotationNode { *; }
+
+-keep class org.jetbrains.org.objectweb.asm.signature.SignatureReader { *; }
+-keep class org.jetbrains.org.objectweb.asm.signature.SignatureVisitor { *; }
+
+-keepclassmembers class org.jetbrains.org.objectweb.asm.Type {
+    *** ARRAY;
+}
+
 -keepclassmembers class org.jetbrains.org.objectweb.asm.ClassReader {
     *** SKIP_CODE;
     *** SKIP_DEBUG;
diff --git a/libraries/tools/kotlin-annotation-processing/pom.xml b/libraries/tools/kotlin-annotation-processing/pom.xml
index 2a00a8c2a09..b4a06244e22 100755
--- a/libraries/tools/kotlin-annotation-processing/pom.xml
+++ b/libraries/tools/kotlin-annotation-processing/pom.xml
@@ -7,8 +7,7 @@
     <properties>
         <maven.version>3.0.4</maven.version>
         <old-kapt.src>${basedir}/src/main/kotlin</old-kapt.src>
-        <annotation-processing.src>${basedir}/../../../plugins/annotation-processing/src</annotation-processing.src>
-        <java-model-wrappers.src>${basedir}/../../../plugins/java-model-wrappers/src</java-model-wrappers.src>
+        <annotation-processing.src>${basedir}/../../../plugins/kapt3/src</annotation-processing.src>
         <annotation-processing.target-src>${basedir}/target/src/main/kotlin</annotation-processing.target-src>
         <annotation-processing.target-src-test>${basedir}/target/src/test/kotlin</annotation-processing.target-src-test>
         <annotation-processing.target-resource>${basedir}/target/resource</annotation-processing.target-resource>
@@ -83,7 +82,6 @@
                             <outputDirectory>${annotation-processing.target-src}</outputDirectory>
                             <resources>
                                 <resource><directory>${annotation-processing.src}</directory></resource>
-                                <resource><directory>${java-model-wrappers.src}</directory></resource>
                                 <resource><directory>${old-kapt.src}</directory></resource>
                             </resources>
                         </configuration>
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt2KotlinGradleSubplugin.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt3KotlinGradleSubplugin.kt
similarity index 86%
rename from libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt2KotlinGradleSubplugin.kt
rename to libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt3KotlinGradleSubplugin.kt
index e536bd6feb8..b6f2b39feb9 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt2KotlinGradleSubplugin.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/internal/Kapt3KotlinGradleSubplugin.kt
@@ -33,17 +33,17 @@ import org.jetbrains.kotlin.gradle.plugin.SubpluginOption
 import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 import java.io.File
 
-// apply plugin: 'kotlin-kapt2'
-class Kapt2GradleSubplugin : Plugin<Project> {
+// apply plugin: 'kotlin-kapt'
+class Kapt3GradleSubplugin : Plugin<Project> {
     companion object {
-        fun isEnabled(project: Project) = project.plugins.findPlugin(Kapt2GradleSubplugin::class.java) != null
+        fun isEnabled(project: Project) = project.plugins.findPlugin(Kapt3GradleSubplugin::class.java) != null
     }
 
     override fun apply(project: Project) {}
 }
 
 // Subplugin for the Kotlin Gradle plugin
-class Kapt2KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
+class Kapt3KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
     companion object {
         private val VERBOSE_OPTION_NAME = "kapt.verbose"
 
@@ -52,10 +52,10 @@ class Kapt2KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
         }
     }
     
-    override fun isApplicable(project: Project, task: KotlinCompile) = Kapt2GradleSubplugin.isEnabled(project)
+    override fun isApplicable(project: Project, task: KotlinCompile) = Kapt3GradleSubplugin.isEnabled(project)
 
     fun getKaptGeneratedDir(project: Project, sourceSetName: String): File {
-        return File(project.project.buildDir, "generated/source/kapt2/$sourceSetName")
+        return File(project.project.buildDir, "generated/source/kapt/$sourceSetName")
     }
 
     private fun Project.findKaptConfiguration(sourceSetName: String): Configuration? {
@@ -75,10 +75,10 @@ class Kapt2KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
         val kaptClasspath = arrayListOf<File>()
 
         fun handleSourceSet(sourceSetName: String) {
-            val kapt2Configuration = project.findKaptConfiguration(sourceSetName)
-            if (kapt2Configuration != null && kapt2Configuration.dependencies.size > 1) {
-                javaCompile.dependsOn(kapt2Configuration.buildDependencies)
-                kaptClasspath.addAll(kapt2Configuration.resolve())
+            val kaptConfiguration = project.findKaptConfiguration(sourceSetName)
+            if (kaptConfiguration != null && kaptConfiguration.dependencies.size > 1) {
+                javaCompile.dependsOn(kaptConfiguration.buildDependencies)
+                kaptClasspath.addAll(kaptConfiguration.resolve())
             }
         }
         
@@ -136,16 +136,13 @@ class Kapt2KotlinGradleSubplugin : KotlinGradleSubplugin<KotlinCompile> {
         val annotationsFile = File(kotlinCompile.taskBuildDirectory, "source-annotations.txt")
         kotlinCompile.sourceAnnotationsRegistry = SourceAnnotationsRegistry(annotationsFile)
 
-        val incrementalCompilationDataFile = File(project.buildDir, "tmp/kapt2/$sourceSetName/incrementalData.txt")
-        pluginOptions += SubpluginOption("incrementalData", incrementalCompilationDataFile.absolutePath)
-        
         return pluginOptions
     }
 
     private val BaseVariantData<*>.sourceProviders: List<SourceProvider>
         get() = variantConfiguration.sortedSourceProviders
 
-    override fun getPluginName() = "org.jetbrains.kotlin.kapt2"
+    override fun getPluginName() = "org.jetbrains.kotlin.kapt3"
     override fun getGroupName() = "org.jetbrains.kotlin"
     override fun getArtifactName() = "kotlin-annotation-processing"
 }
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/gradle-plugins/kotlin-kapt.properties b/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/gradle-plugins/kotlin-kapt.properties
index 750daf39fac..3249724c1c1 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/gradle-plugins/kotlin-kapt.properties
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/gradle-plugins/kotlin-kapt.properties
@@ -1 +1 @@
-implementation-class=org.jetbrains.kotlin.gradle.internal.Kapt2GradleSubplugin
\ No newline at end of file
+implementation-class=org.jetbrains.kotlin.gradle.internal.Kapt3GradleSubplugin
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/services/org.jetbrains.kotlin.gradle.plugin.KotlinGradleSubplugin b/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/services/org.jetbrains.kotlin.gradle.plugin.KotlinGradleSubplugin
index 70f073c8d95..9291a3aa382 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/services/org.jetbrains.kotlin.gradle.plugin.KotlinGradleSubplugin
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/resources/META-INF/services/org.jetbrains.kotlin.gradle.plugin.KotlinGradleSubplugin
@@ -1,2 +1,2 @@
 org.jetbrains.kotlin.gradle.internal.AndroidSubplugin
-org.jetbrains.kotlin.gradle.internal.Kapt2KotlinGradleSubplugin
\ No newline at end of file
+org.jetbrains.kotlin.gradle.internal.Kapt3KotlinGradleSubplugin
\ No newline at end of file