The New Zealand government today proposed a new research and development (R&D) tax incentive package designed to promote investment. Legislation providing for the credit will be introduced into Parliament later this month or in early next month, the government said.
“This is a huge opportunity for businesses to invest in R&D, which will help us increase our productivity and boost wages,” said Megan Woods, New Zealand’s Research, Science and Innovation Minister, announcing the incentive.
New Zealand plans a credit rate of 15% and NZD 120 million (≈USD 78 million) cap on eligible expenditures.
Minimum R&D spending must be NZD 50,000 (≈USD 32,5000) per year to avail of the new incentive.
The release of the plan follows consultations with the businesses community which resulted in the government ultimately proposing a higher rate and lower threshold for the credit.
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