$1 billion in research and development supported through tax incentive
The Government is helping business to succeed with the Research and Development Tax Incentive supporting an excess of $1 billion in research and development activity in New Zealand.
The tax incentive is part of a wider economic strategy to help improve the well-being and living standards of New Zealanders through better productivity, sustainability and inclusive growth.
“Through the tax incentive we’re enabling more businesses to innovate and driving greater investment in research and development as a proportion of GDP,” says Dr Ayesha Verrall.
“Passing the $1 billion milestone represents $150 million in tax credits allocated over the first two years of the scheme.
The Research and Development Tax Incentive provides a 15 per cent tax credit for businesses performing eligible research and development activities in New Zealand.
“There are now 1,625 businesses enrolled in the scheme and we expect to see the amount of research and development increase further as businesses submit their applications, assessments are completed and additional businesses sign up and apply for the scheme.
“This support is stimulating research and development activity in many sectors including the aerospace industry.
“Dawn Aerospace are a great example of a home-grown business that is leveraging the tax incentive to develop same-day reusable space launch vehicles and green satellite propulsion systems.
“They have invested heavily in eligible research and development that will be supported by the tax incentive.”
“Through this incentive we are boosting the amount of research and development taking place and building a high-skill, knowledge-based and productive economy.”
“Innovation is key to solving challenges we face, improving our wellbeing and accelerating sustainability.
“I encourage all businesses who may be performing research and development in New Zealand to visit the refreshed website at www.rdti.govt.nz/ and take the quick quiz to see if they could be eligible for the tax credit,” says Dr Verrall.