Monday, July 15, 2024

Billion dollar research industry given tax break

The Government is hoping a new Research and Development Tax Incentive will help to boost the more than $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, said Research, Science and Innovation Minister, Ayesha Verrall.

“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 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% 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,” the Minister said.

“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.

“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,” the Minister said.

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