Increased support for innovation
Moves to broaden R&D tax incentives for more businesses have been welcomed by BusinessNZ.
The Government has announced a tax incentive for investment in research and development by companies that have yet to make a profit. A rebate up to the level of their payroll tax paid in the same year will be available for new and loss-making firms.
BusinessNZ Chief Executive Kirk Hope said the new incentive, along with Callaghan Project Grants and the current R&D tax credit, would provide innovation incentives to a broader range of businesses.
"In the past, small start-ups and businesses engaging in the risky process of developing something new were not eligible for R&D tax relief if they were not making a profit.
"This new incentive will help foster innovation among currently loss-making businesses and create a fairer scheme for greater innovation in the New Zealand economy generally."