How some R&D companies can gain from tax losses

If you're a company doing research and development (R&D) work — and operating at a tax loss — you might be entitled to some cash. That's thanks to Government's new R&D loss tax credit. 

Under the old rules, tax losses had to be carried forward and deducted against a business’ future taxable income. Now, companies that qualify will have the option to cash out (claim and be refunded) some or all of their tax losses – up to $500,000 annually.

This credit will help businesses to continue investing in R&D and successfully get their innovations to market.

To figure out if your company is eligible and to apply, visit Inland Revenue’s R&D loss tax credit page:

Eligible companies for the R&D loss tax credit(external link) — Inland Revenue

The new rules apply to income years beginning on or after 1 April 2015.

Your business may also be eligible for some of Callaghan Innovation's R&D grants. The grants are for:

  • students and student businesses.
  • businesses whose innovation activity willl have a wide benefit across the New Zealand innovation system.
  • businesses in the early stages of their R&D investment to establish an R&D programme and capability.

R&D funding(external link) — Callaghan Innovation 

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