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 website's Research & Development section (external link) .
The new rules apply to income years beginning on or after 1 April 2015.
Your business may also be eligible for Callaghan Innovation's R&D grants (external link) for: