New Zealand First is celebrating the passing of the Taxation (Research and Development Tax Credits) Bill, which introduces a research and development (R&D) tax incentive for New Zealand businesses.

“This incentive will be crucial in maintaining our nation’s competitive edge in areas where we are already world leaders, and diversifying to gain a foothold in other industries,” says New Zealand First Deputy Leader, Fletcher Tabuteau.

“New Zealand First has consistently campaigned to introduce such a tax incentive, and increase public spending on R&D to encourage business and economic growth.

“Under the previous Government’s failed grant scheme, R&D spending continued to lag behind international competitors. Finding a way forward to close this gap was a priority for New Zealand First during coalition negotiations.

“This tax credit is an important step towards fulfilling the Coalition Agreement commitment to work towards increasing Research & Development spending to 2% of GDP over ten years.

“The passing of this Bill is a significant milestone for the Coalition Government and we commend the work of Research, Science and Innovation Minister Woods, on this research incentive,” says Mr Tabuteau.