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Income Tax Act 2007

Tax credits and other credits - Terminating provisions

LZ 13: Part-year override of section LY 3(2)(b)

You could also call this:

“Special rules for partial-year Callaghan Innovation Growth Grant recipients in 2020-2021”

This law applies to you if your 2020-2021 income year starts after 1 April 2020 and you get a Callaghan Innovation Growth Grant for only part of that year.

Even though another part of the law (section LY 3(2)(b)) says something different, you might be able to use subpart LY for the part of the year after your Callaghan Innovation Growth Grant contract ends. But you need to be careful about how you split up your research and development spending. You should only count the spending that’s for the research and development tax credit, not the spending that’s for the Callaghan Innovation Growth Grant.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS341209.

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Part L Tax credits and other credits
Terminating provisions

LZ 13Part-year override of section LY 3(2)(b)

  1. This section applies for a person’s 2020–21 income year if—

  2. the person’s 2020–21 income year starts after 1 April 2020; and
    1. the person receives a Callaghan Innovation Growth Grant for only part of the 2020–21 income year.

      1. Despite section LY 3(2)(b) (When this subpart applies), subpart LY may apply to a person for the part of the year after their Callaghan Innovation Growth Grant contract ends, to the extent to which they appropriately apportion their eligible research and development expenditure to the research and development tax credit and not to the Callaghan Innovation Growth Grant for that part of the year.

      Notes
      • Section LZ 13: inserted, on , by section 41 (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
      • Section LZ 13(2): amended, on , by section 165 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).