How the Government can support your R&D
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R&D funding support
The RDTI is part of a wide range of government initiatives designed to support R&D activity at different stages of business growth.
Other available R&D funding options include Inland Revenue's R&D loss tax credit and Callaghan Innovation's short-term R&D Loan and the Getting Started, Project and Student Grants. The RDTI takes the place of the Callaghan Innovation Growth Grant as the Government's major form of R&D funding support for businesses. The Growth Grant will be retired in the 2020/21 tax year. Different eligibility criteria apply for the RDTI.
It's important to note that the RDTI can be claimed alongside the R&D loss tax credit. It can also be claimed alongside the other R&D funding options listed below, but not for the same expenditure or for required co-funding.
Explore the downloadable infographic and other information on this page for an overview of some of the R&D funding options available to help you achieve your innovation goals.


R&D Tax Incentive
R&D Tax Incentive (RDTI)
- The RDTI offers a 15% tax credit on eligible R&D expenditure.
- It applies across a wide range of industry sectors and to a number of eligible R&D activities.
- Eligible R&D expenditure between $50,000 and $120 million per year can be claimed (some exceptions apply).
- A limited form of refund ability applies for 2019/2020, mainly for smaller businesses that are R&D intensive and pay little or no income tax. A more comprehensive policy will be in place from 2020/2021.
- The Government will invest $1 billion into the RDTI over the next four years to encourage New Zealand businesses to spend more on R&D.
- The RDTI can be claimed alongside the R&D loss tax credit. It can also be claimed alongside the other R&D funding options listed below, but not for the same expenditure or for required co-funding.
- The RDTI is jointly administered by Inland Revenue and Callaghan Innovation. Visit www.rdti.govt.nz
Getting Started Grants
A Getting Started Grant is for businesses that are early stage or new to R&D.
- It offers up to $5,000 for launching an R&D project and navigating roadblocks to commercialisation.
- It covers 40% of costs for R&D conducted in New Zealand.
- A one-off payment is provided at the end of the project.
- You must be a company, limited partner or Māori incorporation/trust.
- Visit Callaghan Innovation for more.
Project Grant
A Project Grant covers up to 40% of eligible R&D project costs for businesses new to, or expanding, R&D in New Zealand.
- It’s available if you have been performing R&D for less than three years, or have spent less than $800,000 on average each year for the last three years.
- You will receive payment in monthly or quarterly arrears.
- You must be a company, limited partner or Māori incorporation/trust.
- Visit Callaghan Innovation for more.
- NOTE: If you have a Callaghan Innovation Project Grant then you are not able to claim the R&D Tax Incentive (RDTI) on any expenditure relating to the R&D activities funded by the Project Grant. Read the Fact Sheet for Project Grant recipients for further details.
R&D loss tax credit
R&D loss tax credit
- Up to 28% of a business’ tax losses from eligible R&D expenditure may be cashed out (refunded) instead of carrying forward to the next income year.
- A maximum allowable value of $476,000 applies in the 2019/2020 tax year.
- You can claim the R&D loss tax credit with the RDTI for the same expenditure.
- Visit Inland Revenue for more.
Student Grants
An R&D Experience Grant allows you to hire a tertiary student to support your R&D work during their summer break.
- The student must be NZQA level 7-10 in science, technology, engineering, design or business in New Zealand. They must not be employed by the business or have undertaken more than two R&D Experience Grants there before.
- The business receives funding of $8,460 plus GST for 400 hours of full time work.
- It’s available if you have an active R&D programme and are a company, limited partner or Māori incorporation/trust.
- Visit Callaghan Innovation for more.
An R&D Fellowship provides businesses with advanced research at PhD or Masters level to help solve an R&D problem.
- The research is undertaken on site at both the business and the student’s university, and is jointly supervised.
- Students receive a stipend (maximum $26,000 p.a.) and a fee (of $4,500 p.a.) is paid to the university to support their hosting role.
- Funding is for research activity only, for a maximum of three years for PhD students and two years for Masters students.
- The student must be enrolled at research Masters or PhD level in science, technology, engineering, design or business in New Zealand.
- It’s available to businesses that have an active R&D programme. The business must be a company, limited partner or Māori incorporation/trust.
- Visit Callaghan Innovation for more.
An R&D Career Grant provides funding for an internship. It allows a PhD or Masters graduate to gain six months experience helping solve an R&D problem.
- The business receives funding for the first six months of the student’s annual salary up to $30,000 for a Masters graduate and up to $35,000 for a PhD graduate.
- The student must be about to complete, or have completed, a degree in science, technology, engineering, design or business in New Zealand.
- They must have completed their course of study less than 12 months ago and cannot already be employed in the industry.
- You must have an active R&D programme and be a company, limited partner or Māori incorporation/trust.
- Visit Callaghan Innovation for more.









Government Support for R&D Commercialisation and Business Innovation
Additional government support is available to help commercialise R&D outputs and to promote innovation within certain sectors of the economy. For example, NZTE offers a capability vouchers scheme to offset the costs of approved training (up to $5,000) and a low-fee business mentor service. Additionally, investment funds such as the Seed Co-investment Fund and the New Zealand Venture Fund (NZVIF) can provide extra capital to startup and early stage businesses.
It’s worth being aware that while many of these R&D commercialisation and innovation support options can be claimed alongside the RDTI, some may restrict you from claiming certain expenditure, or even altogether.