Tax Administration Act 1994

Information, record-keeping, and returns - Returns - Research and development

68CD: Research and development tax credits: approved research and development cap

You could also call this:

"Getting a higher tax credit for research and development that helps New Zealand"

Illustration for Tax Administration Act 1994

You can get a tax credit for doing research and development. The Commissioner can approve a higher cap than $120 million for you. You can ask for this approval by giving the Commissioner information in the right form. You need to ask for approval within two months after the end of the income year. The Commissioner will only approve a higher cap if your research helps New Zealand a lot. They must also talk to the Ministry of Business, Innovation and Employment first. The Commissioner makes decisions about tax credits under section LY 4 of the Income Tax Act 2007.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS200912.

68CC: Research and development tax credits: greater than $2 million approval, or

"Getting a tax credit for spending over $2 million on research and development"

68CE: Research and development tax credits: publication of details, or

"Who gets research and development tax credits and how much they get"

Part 3Information, record-keeping, and returns
Returns: Research and development

68CDResearch and development tax credits: approved research and development cap

For the purposes of section LY 4 of the Income Tax Act 2007, the Commissioner may, in accordance with this section, approve for a person an amount greater than $120 million as the person’s approved research and development cap for an income year.
A person may request approval for an approved research and development cap by providing information to the Commissioner in the prescribed form on or before the 7th day of the 2nd month after the end of the income year.
The Commissioner must not approve an approved research and development cap for a person unless—
the relevant research and development activities give rise to substantial net benefit for New Zealand; and
the Commissioner has first consulted with the chief executive of the Ministry of Business, Innovation and Employment.

Notes

Section 68CD: inserted, on 1 April 2019, by section 30 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).