Legislation to incentivise more business expenditure on research and development has been introduced to Parliament.

Research, Science and Innovation Minister Megan Woods says the Taxation (Research and Development Tax Credits) Bill will support the Government’s broader goals of creating a productive, sustainable and inclusive economy.

“The R&D tax incentive is a key lever for addressing the critical issues New Zealand is facing. We need new solutions to combat issues like climate change, child poverty and homelessness. Research and development will help us find the solutions to these problems.

“The tax credit will also incentivise businesses to do more R&D, creating more high value jobs and lifting household incomes.

“We worked really closely with businesses and experts on the design details of the tax incentive and as a result we made significant changes from the proposed credit.

“Today I am proud to introduce the R&D tax Incentive legislation to Parliament. This is a key component of our ambitious goal of lifting R&D spending to two percent of GDP which is part of the Coalition Agreement between Labour and New Zealand First.

“To reach this target we need to incentivise more business expenditure on R&D, which will be supported by a 15 percent tax credit.

Revenue Minister Stuart Nash says the scheme detailed in the Bill strikes a balance between including as many businesses as possible, and upholding the integrity of New Zealand’s tax system.

“We have learned from international best practice how to incentivise R&D expenditure and retain trust and confidence in the tax system. The new policy meets the rigour of international schemes, and will grow innovation by supporting businesses to undertake genuine R&D,” says Stuart Nash

“I encourage the public and businesses to have their say on the details of the Bill through the upcoming Select Committee process in November,” says Megan Woods.