Plan for more investment in innovation

BusinessNZ says proposals for R&D tax credits could help more New Zealand companies innovate.

The Government is seeking feedback on a plan to allow qualifying companies to claim back 12.5% of their spending on research and development.

BusinessNZ Chief Executive Kirk Hope said the proposal addressed the desire of business to invest more in new, differentiated, high-value products, and could help raise company R&D investment overall.

"The proposal would broaden access to R&D support for more companies, and business would welcome that.

"Business would like to see the best possible mechanisms for R&D support, and will engage positively in the consultation process on the proposal.

"The proposed tax credit system is focused mainly on helping larger companies, while smaller companies would continue to utilise the Project Grants system under Callaghan Innovation - the consultation may help determine whether these are the best ways of supporting large and small companies respectively.

"Business will also have views on the best way of providing R&D support for companies in tax loss situations.

"BusinessNZ will consult widely with business members about the design of this proposal and looks forward to working with Government on refining its support system for increasing investment for innovation."
ENDS

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