New Zealand R&D Tax Incentive

New Zealand R&D Tax Incentive

Offers New Zealand businesses tax credits for qualifying innovation activity and reduced project cost.

The New Zealand R&D Tax Incentive (RDTI) is a statutory tax credit administered jointly by Inland Revenue (IRD) and the Ministry of Business, Innovation and Employment (MBIE), providing eligible businesses with a 15% tax credit on qualifying research and development expenditure incurred in New Zealand. The program is not a competitive grant; it is a continuously open, income-year-based incentive claimed through the normal income tax return process. Eligible expenditure must meet a minimum threshold of NZD $50,000 per income year, with a maximum claimable base of NZD $120,000,000 per income year — producing a maximum annual credit of NZD $18,000,000 per entity. R&D activities must seek to resolve scientific or technological uncertainty using a systematic approach. The scheme is sector-agnostic, applying to any industry conducting qualifying R&D on New Zealand soil.

Eligible entities are New Zealand-based businesses — for-profit companies, with universities and approved research providers also able to participate — that conduct R&D activities within the country. Businesses must register with Inland Revenue via the myIR portal and submit either a General Approval (GA) application or, for larger established R&D performers, a Criteria and Methodologies (CAM) approval, each with deadlines tied to the entity's balance date. For the standard March 31 balance date, the 2026/27 income year GA application is due June 30, 2027. Loss-making R&D performers may be eligible for a refundable credit under specific refundability provisions. Callaghan Innovation historically provided customer-facing support; this function has transferred to MBIE.

The RDTI rewards systematic, documented R&D investment rather than a single transformational project pitch. Applicants must maintain detailed records of qualifying activities and expenditure. The credit stacks with other permitted support but interacts with contractor and approved research provider rules that affect both eligibility and credit quantum. Organizations new to the scheme should begin with a GA application, engage MBIE guidance early, and ensure internal R&D expenditure classification aligns with IRD's statutory definitions before the relevant income-year deadline.