In this article, our grant consultants explain how to secure government grants and tax credits to lower your cost of R&D.
As businesses strive for a competitive edge, expansion and sustainability, many will dive into research and development (R&D) to develop innovative new products. These businesses quickly realise that the costs of skilled staff, design work and thorough testing can be high.
The good news is that you don’t need to shoulder the costs alone. Thousands of New Zealand businesses are getting help to fund their R&D projects through government grants and tax credits . Let’s explore the key R&D grants and tax incentives on offer for NZ businesses.
Research and Development Tax Incentive (RDTI)
Fuel your innovation with ongoing tax credits and possible cash refunds for 15% of R&D expenses with New Zealand’s RDTI . Excellent for long-term projects at both small and large businesses. We’re experts at helping businesses apply and receive the RDTI .
IRD – R&D Loss Tax Credit
New Zealand’s best-kept R&D funding secret, the IRD , allows you to ‘cash out’ up to 28% of your R&D-related tax losses as a refund, in addition to the RDTI – a handy deal for early-stage businesses.
Callaghan Innovation – New to R&D Grant
The New to R&D Grant can jumpstart your journey with a grant for 40% of your R&D costs. Designed to develop your long-term R&D capabilities, this funds training and upskilling in addition to specific R&D expenses. A better deal than the RDTI, if you still qualify as ‘new’. Dive into the details over at Callaghan Innovation .
Callaghan Innovation – Ārohia Trailblazer Grant
Not strictly R&D but if your business is a true NZ trailblazer in your industry, the Ārohia Trailblazer Grant could propel your impressive new product to market with attractive commercialisation funding. Beware, this one is hotly contested with some tricky rules, but our consultants can help you access the Ārohia Trailblazer Grant .
Callaghan Innovation – R&D Career and R&D Experience Student Grants
Tap into fresh talent with 10-week R&D internships for university students, or six-month employment support for PhD/Masters graduates. The R&D Career and R&D Experience Student Grants provide a cost-effective solution to seed grassroots innovation, and are an ideal launchpad for kickstarting careers.
MBIE – Te Pūnaha Hihiko: Vision Mātauranga Capability Fund (VMCF)
Unleash potential with the VMCF , developing your science and research capabilities with connections and placements between Māori organisations and research organisations in the science and innovation system.
MBIE – He aka ka toro Investment Fund
Empowering Māori-led research, science and innovation, the He aka ka toro Investment Fund supports Māori organisations with grants for research projects, project planning, capability development and research translation. Over-subscribed in 2023, but one to watch for 2024.
MPI – Māori Agribusiness Innovation Fund
Grow your Māori primary sector business with grants for innovative practices and products in horticulture, aquaculture, agriculture and forestry. The Māori Agribusiness Innovation Fund is ideal for developing, demonstrating and getting advice on new ideas and projects with community and environmental benefits.
MPI – Sustainable Food & Fibre Futures Fund
Sow the seeds of sustainability with the SFF Futures Fund , supporting a wide range of studies that contribute to the economic, environmental, and social sustainability of New Zealand's food and fibre industries. Flexible funding to fit your needs, and always open for submissions.
AGMARDT – Agribusiness Innovation Grants
Develop innovative products and research early concepts in land-based food and fibre sectors with Agribusiness Innovation Grants . Nurturing cutting-edge, scalable ideas to transform your sector and bring environmental benefits – it’s no wonder these were in high demand in 2023.
ACC – Innovation Fund
Accelerate injury recovery with innovative projects in health services through the ACC Innovation Fund . This has funded service design, systems, technology, equity, and process improvements – stay tuned for the round three.
MfE – Waste Minimisation Fund
Transform waste management practices with the Waste Minimisation Fund , offering support for initiatives to combat emissions by diverting food, green waste, paper and wood from landfill. Geared towards new infrastructure and enabling systems, the fund also supports R&D, business cases, or innovation projects.
CODE – Gaming KickStart and StartUp funding
Power-up the digital game industry with this suite of smaller grants from CODE that support innovative prototypes, commercial launches, ambitious projects, tools or services providers, and efforts to forge industry relationships. Originally focussed on Dunedin but recently expanded nationally.
NZ On Air – Game Development Sector Rebate (GDSR)
Valuable additional support for the digital game development sector, the new GDSR provides an ongoing 20% rebate for game development costs. Designed to fortify mid to large-sized studios, the GDSR from NZ On Air supports a broad range of development-related activities to promote industry growth and job creation.
Your NZ R&D Funding Adventure Starts Here
At BlueRock, we understand that government grants for innovation and R&D can be frustrating. Applications can be complex, and deadlines creep up on you. Don’t let these opportunities slip away. Secure the funding you need and put your best foot forward in the competitive business landscape.
Ready to explore these opportunities or discover what other funding options might be waiting for you? Reach out to BlueRock's Grants & Incentives advisors .
