R&D tax incentive policy announced
On: 3 October 2018
The Government has announced the final design of the R&D Tax Incentive following extensive consultation with the innovation sector and businesses throughout the country.
The Ministry of Business, Innovation and Employment, Inland Revenue, and Callaghan Innovation have developed a robust, evidence-based scheme to support more New Zealand firms and start-ups to undertake R&D activity.
The key features include:
- A credit rate of 15 per cent, a $120 million cap on eligible expenditure, and a minimum R&D expenditure threshold of $50,000 per year.
- A broad set of eligibility criteria and the inclusion of State-Owned Enterprises, industry research cooperatives (including levy bodies) and minority-owned subsidiaries of Crown Research Institutes, Tertiary Education Organisations and District Health Boards.
- A definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector.
- A limited form of refunds for the first year of the tax incentive, which will mirror the R&D tax-loss cash-out scheme run by IRD.