R&D Tax Incentive
The Government has committed to raising New Zealand’s research and development (R&D) expenditure to 2% of GDP over 10 years.
To reach this target more businesses will need to increase their expenditure on R&D. This will be supported through an R&D tax incentive.
We have listened to your feedback and have produced a user-friendly, fit-for-purpose scheme that will support a wide range of businesses to undertake more R&D.
The key features of the R&D tax incentive include:
- A credit rate of 15%
- A $120 million cap on eligible expenditure
- A minimum R&D expenditure threshold of $50,000 per year
- A limited form of refunds for the first year of the scheme that will mirror the R&D tax-loss cash-out scheme run by Inland Revenue. A more comprehensive policy will be in place for the second year of the scheme
- A definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector
- The inclusion of State Owned Enterprises, industry research cooperatives, levy bodies, and minority-owned subsidiaries of select Crown entities.
The 15% tax credit will be available from the beginning of a business's 2019/20 income year.
Policy changes from the Discussion Document
Briefing documents for download
- Approach to the R&D tax incentive bill (redacted) [PDF 71KB]
- R&D Tax Incentive - Summary of Submissions (redacted) [PDF 1.5MB]
- Report on UK and Norway R&D Tax Credit Schemes (redacted) [PDF 175KB]
- R&D tax incentive for implementation (redacted) [PDF 181KB]
- R&D Tax Incentive Support for loss-making firms and transition arrangements (redacted) [PDF 118KB]
- Cabinet paper R&D tax incentive for implementation (redacted) [PDF 109KB]
- Options to expedite transition of Growth Grant customers to R&D Tax Incentive (redacted) [PDF 102KB]
- R&D Tax Incentive Extensions to Growth Grant contracts (redacted) [PDF 71KB]
- R&D tax incentive for implementation cabinet paper (redacted) [PDF 321KB]
- Science and Innovation Briefings on the R&D Tax Incentive, 2 November 2017 – 15 May 2018 (redacted) [PDF 6.9MB]
- Submissions 001-026 (redacted) [PDF 15.6MB]
- Submissions 027 - 036 (redacted [PDF 8.9MB]
- Submissions 037 - 059 (redacted) [PDF 6.7MB]
- Submissions 060 - 089 (redacted) [PDF 5.3MB]
- Submissions 090 - 108 (redacted) [PDF 4.3MB]
- Submissions 109-135 (redacted) [PDF 13MB]
- Submissions 136 - 167 (redacted) [PDF 762KB]
- Submissions 168-199 (redacted) [PDF 13MB]
- Submissions 200-233 (redacted) [PDF 6MB]