Research, Science and Innovation Minister Megan Woods and Revenue Minister Stuart Nash announced plans to introduce R&D tax credits in the Budget last week, claiming this will “help us transition away from the current growth Grants model, which is available to a narrower range of firms.”
“Government is putting $1.0 billion of operating expenditure over four years on the table to finance an R&D tax incentive, giving eligible businesses 12.5 cents back for every dollar they spend on R&D. This funding will be available to all businesses spending more than $100,000 a year on R&D.”
The growth Grants model has been administered by Callaghan Innovation, an organisation set up by the previous National Government. It was formed in February 2013 by combining the former crown research institute IRL, MBIE’s business investments team, the Auckland Foodbowl, and NZTE's Lean Manufacturing programme.
Speaking to Computerworld yesterday, following a Techweek event about creating a business case for a trans-Tasman Innovation Ecosystem, Crone was upbeat about the change.
