New RDTI guidance released on ‘Eligible R&D Activity’. Read more

How the Government can support your R&D

A wide range of R&D support is available to New Zealand businesses, whether you’re just starting out or already a significant R&D investor. Explore some of the options available to help you achieve your innovation goals.

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.


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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 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.

DOWNLOAD THE R&D FUNDING INFOGRAPHIC
Government funding for research & development (R&D)Government funding for research & development (R&D)

R&D Tax Incentive

How can I get help with the costs of my R&D programme?

Getting Started Grants

Is there funding for my business to start doing R&D?

Project Grant

Is there funding to help my business expand its R&D?

R&D loss tax credit

Can my R&D tax losses be refunded?

Student Grants

Is there funding to get short-term, skilled staff for my R&D project?
How can I access funded expertise to help with a challenging research project?
I want to add a highly skilled graduate to my R&D team, is there funding to assist?
a credit rate of 15%a $120 million expenditure capa minimum R&D expenditure of $50k per year (or less with an approved research provider)
Occur in New ZealandSeek to resolve scientific or technological uncertaintyFollow a systematic approachSeek to create new knowledge, or new or improved processes, services or goods
1. enrol with Inland Revenue on myIR. 2.keep appropriate records of your eligible R&D activity and expenditure as set out in the record keeping section. 3.make a judgement (self-assessment) that your business is an eligible entity with eligible R&D activity and eligible expenditure . 4.complete an R&D supplementary return. 5.	file your income tax return, making sure you complete the R&D tax credit field.1. enrol with Inland Revenue on myIR. 2.keep appropriate records of your eligible R&D activity and expenditure as set out in the record keeping section. 3.make a judgement (self-assessment) that your business is an eligible entity with eligible R&D activity and eligible expenditure . 4.complete an R&D supplementary return. 5.	file your income tax return, making sure you complete the R&D tax credit field.

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.

DOWNLOAD THE FULL INTRODUCTORY GUIDE
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