How the Government can support your R&D
For the purposes of the RDTI, there is a specific statutory definition of ‘R&D’ which is not the same as the commercial, engineering or accounting definitions. The tax credit is not just for scientific research but also for development activity that meets the eligibility criteria.
There are clear criteria around what does and doesn’t qualify as eligible R&D for claiming the RDTI and these should be considered in detail before launching a project.
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 the Callaghan Innovation 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 has been 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
Getting Started Grants
R&D loss tax credit
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.