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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)

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"Special rule for research grants that don't cover the whole year"

Illustration for Income Tax Act 2007

You have a special situation for your 2020–21 income year. This happens if your income year starts after 1 April 2020 and you get a Callaghan Innovation Growth Grant for only part of the year. You might be able to use subpart LY for the rest of the year after your grant ends. You can do this if you split your research and development costs correctly between the research and development tax credit and the Callaghan Innovation Growth Grant. This applies to the part of the year after your grant contract ends. You must follow the rules in section LY 3(2)(b) to do this.

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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 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).