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Funding support for NZ businesses performing R&D

Funding support for NZ businesses performing R&D

In these challenging economic times, investment in research and development (R&D) is vital to promote business growth. R&D can enable your business to create new knowledge, high value products, innovative processes and services, and skilled jobs for more New Zealanders.  

The R&D Tax Incentive (RDTI) is the Government’s billion-dollar flagship investment to help businesses do more R&D. Qualifying New Zealand businesses can claim a 15% tax credit on their eligible R&D costs under the scheme, helping reduce the amount of income tax that they need to pay. The RDTI is generally available to those businesses that spend more than $50,000 on eligible R&D in a given year (up to a cap of $120 million). However, businesses spending less than $50,000 may also be able to claim the tax credit if they use an approved research provider for their R&D. 

Recent changes introduced under the COVID-19 Response Act mean more loss-making businesses will now be eligible to claim the RDTI and have their credit refunded. These broader refundability rules are backdated to the beginning of the RDTI scheme (the 2019/2020 income year) to help put much-needed cash back into R&D-performing businesses that are making losses.

The RDTI is administered by Inland Revenue in partnership with Callaghan Innovation. The tax credit is part of a range of government R&D support options designed to help businesses build their competitive advantage by growing and commercialising their R&D. 

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