The Research and Development Tax Incentive is supporting more tan $1 billion in research and development activity in New Zealand,, Research, Science and Innovation Minister Ayesha Verrall announced today.
She described the tax incentive as a 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.
She did not provide enough information to allow AgScience to gauge if agricultural and horticultural science is getting a fair share of the investment encouraged by the incentive.
But she did give the country’s aerospace industry a special mention.
She said 1,625 businesses are enrolled in the scheme and she expects 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.”
Dr Verrall explained that through the tax incentive the Government is enabling more businesses to innovate and is driving greater investment in research and development as a proportion of GDP.
“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.
“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.”
Dr Verrall encouraged all businesses which may be performing research and development in New Zealand to visit the refreshed website at www.rdti.govt.nz/ and see if they are eligible for the tax credit.
Source: Minister of Research, Science and Innovation