ManufacturingNZ says tax incentives for research and innovation are a good step towards a higher-innovation economy.
The Government is proposing a system of 12.5% tax refunds on company investment in R&D for expenditure over $100,000 a year. The system would work in tandem with the R&D grants administered by Callaghan Innovation, and would replace the current Callaghan Growth Grants.
ManufacturingNZ Executive Director Catherine Beard said support for firms investing in innovation was critical.
“For manufacturing businesses, the pace of change has never been faster. Manufacturers must either invest in innovation, or get left behind. It’s not possible to be globally competitive and create higher paying jobs unless you’re at the forefront of R&D innovation.
“Surveys of manufacturing exporters consistently show R&D support as their biggest need. This proposal could go a long way towards increasing company-level investment in innovation.”
Catherine Beard said consultation with manufacturers would be important as the scheme was developed.
She said questions to be answered included –
– Whether the tax incentive system would be easier or harder to navigate than the current system of Growth Grants
– Whether more work should be done to make the system usable by small companies
– What would be the right level of information to be required from companies as they lodge an R&D claim
– Whether more support should be permissible for New Zealand companies undertaking research and development overseas
“ManufacturingNZ will consult closely with large and small businesses on the features of this proposal and relay our views to Government, to help achieve an R&D support system that is world class.”
For more information contact:
Catherine Beard 027 463 3212