An element of the Jacobian is not finite or NaN

I am working on Econ thesis about the subsidy for the consumption. There are some problem with initial-block as the steady point ,but it always makes Jacobian contain inf or NAN. :confused:
I have attached the code below. I am uncertain how to move forward following the error codes I am getting. Any help would be greatly appreciated.

Thank you!
subsidy.mod (2.51 KB)

Execute the computations before the model block using F9 in Matlab. You will see that ls=0, which cannot be

Thank you! Your advise is very usefull.I get it,but If i wanna attach this research ,Should i rebuild the model or adjust the parameter? Any help would be greatly appreciated.

The model may be fine, but the starting values you compute are wrong/invalid. You need to adjust those