The Government’s proposal to develop a Research and Development (R&D) Tax Incentive is aimed at getting more businesses to spend on R&D, and opening the door for smaller businesses to do so, too.
Under the new policy, for a business to qualify for the 12.5% tax incentive they’ll be required to spend $100,000 per year, down from the current $300,000 per year, on research and development.
It is intended that this proposal will allow businesses to decide what R&D they should do, and opens access to those that have either struggled to access support or who’ve been limited in the past.
“Manawatū is home to a number of SME’s who would not have the capacity to spend $300,000 on research and development,” says Business Growth Advisor R&D Peter Ellingham. “This proposal is exciting because in theory, it should encourage smaller businesses to engage in spending in this area.”
Under the current policy, companies that spend $300,000 or more on R&D, can apply for a Growth Grant from Callaghan Innovation which offers a 20% rebate on that spend, over a 3 year period.
For more information on the proposal here’s a FAQ page, the MBIE Discussion document, and to have your say you can submit here, by Friday June 1.
CEDA will keep you up to date with any future development on this. Get in contact if you have questions, or want to discuss your R&D future!
This originally appeared in 60 Seconds with CEDA, a weekly update on our latest news and projects, delivered to your inbox. Sign up for this by scrolling to the footer of this web page.