Pete Hodgson - beehive.govt.nz |
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New era for research and development Posted: 27 Mar 2008 08:01 PM CDT Increasing the level of private research and
development will become that much easier because of a Labour-led government
tax credit initiative which comes into effect on 1 April, Research, Science
and Technology Minister Pete Hodgson said today. Pete Hodgson made his comments during a visit
to Australo, a “From April 1, businesses investing in
research and development can earn a 15 per cent tax credit on that spending.
It is estimated that the credit will be worth $630 million for business over
the next four years. “Australo is a great
example of an innovative “While public sector spending is about 75 per
cent of the Western world average, private sector spending is only about a
third. However, private sector investment has been growing quickly in recent
years, and from 1 April will grow faster still. “This tax incentive will give businesses the
ability to invest in their own research or to commission third party research
providers to support their growth. It will enable small business to start
investing in R&D, and allow larger companies to expand on what they
already do. “While providing a significant financial boost
for business, the credit will also stimulate the links between business and
researchers. Extracting maximum value from the intellectual capital sitting
within our research organisations is a must for the economy.” The R&D tax credit, which was announced
during the budget last year, is a long-term commitment to investing in “This tax credit, along with the recently
announced $700 million New Zealand Fast Forward initiative, will ensure that |