If you do research and development (R&D) work, claiming a special tax credit of up to $224,000 this year could ease cash flow problems and hasten your product to market. Here’s how to get the money — plus find out about New Zealand innovators who have used it to get ahead.
The R&D loss tax credit is designed to help New Zealand’s most innovative businesses when they may be struggling with cash flow — before they’ve taken products to market.
Eligible businesses can “cash out” — claim and be refunded — up to $224,000 of their R&D losses in a given tax year.
Last year, the credit gave hundreds of businesses early access to their tax losses, improving their cash flow and allowing them to reinvest in their businesses.
The good news is you can claim the credit every year, as long as your business operates at a tax loss. You can find out if you’re eligible and apply for the credit on the Inland Revenue website.
Find out if you’re eligible(external link) — Inland Revenue
Find out how the R&D loss tax credit helped drone design business Aeronovics turn its big idea into reality.
Watch the video: