By Matthew Roscoe • 25 August 2022 • 16:09
New Zealand introduces tax incentive to support $1 billion research and development scheme. Image: ChameleonsEye/Shutterstock.com
New Zealand’s 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.
“Through the tax incentive we’re enabling more businesses to innovate and driving greater investment in research and development as a proportion of GDP,” said Dr Ayesha Verrall on Thursday, August 25.
“Passing the $1 billion milestone represents $150 million (€94 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.
“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.
“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.”
Verrall added: “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.
“I encourage all businesses who may be performing research and development in New Zealand to visit the refreshed website and take the quick quiz to see if they could be eligible for the tax credit,” Dr Verrall concluded.
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Originally from the UK, Matthew is based on the Costa Blanca and is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]
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