Plain language law

New Zealand law explained for everyone

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 rule for research and development tax credits when you get a grant for part of the year"

Illustration for Income Tax Act 2007

You have a 2020-21 income year that starts after 1 April 2020. You get a Callaghan Innovation Growth Grant for only part of that year. This means you can use section LY 3(2)(b) differently for the rest of the year. You can use subpart LY for the part of the year after your grant ends. This is if you spend money on research and development, and you claim it for the research and development tax credit. You must work out how much of your spending is for the tax credit and not for the grant.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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

This page was last updated on — View changes

Topics:
Money and consumer rights > Taxes
Previous

LZ 12: Meaning of increase in savings, or

"Definition of 'increase in savings' no longer exists in tax law"

Next

LZ 14: Research and development tax credits’ refundability: option for 2019–20 income year, or

"Option to refund research and development tax credits for the 2019-20 tax year"

Part LTax 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).