Updated June 2026

RDTI eligibility NZ: when should you look at the R&D Tax Incentive?

RDTI may be relevant where a business is carrying out eligible R&D activity in New Zealand and has sufficient eligible expenditure. It is not a general startup grant.

What it currently is. The R&D Tax Incentive is a tax credit for eligible R&D expenditure, administered through Inland Revenue and MBIE settings. Rates, thresholds and process can change, so confirm current settings on official RDTI and IRD pages.

TAX

What RDTI is

A tax credit for eligible R&D expenditure. It rewards businesses already doing eligible R&D.

REC

What matters

Definition of activity, evidence, expenditure records and specialist review usually matter more than the label.

Who it may suit

  • You have existing R&D activity, not just a plan
  • The work involves a genuine technical or scientific uncertainty
  • Your R&D spend is material, rather than incidental
  • You keep, or can keep, evidence and proper records
  • The work is software, product, hardware, process or other technical development that resolves an uncertainty

Who it may not suit

  • Idea-stage businesses with no R&D under way
  • Routine development with no real technical uncertainty
  • Weak or missing records of activity and spend
  • Low or unclear R&D spend
  • No accountant or RDTI adviser involved where the claim is likely to be complex

Common mistakes

The common mistake is assuming technical work automatically means RDTI. Routine development does not necessarily fit. The work, uncertainty, records and expenditure need to be tested before acting.

What to check before spending time

  • A short project description
  • The technical or scientific uncertainty
  • Expenditure records
  • Staff and contractor records
  • A project timeline
  • Evidence of testing, experiments or development work

Official sources to check

Sources and review status

Last reviewed: June 2026.

Official sources checked: IRD, RDTI.govt.nz and MBIE.

NZ Funding Pathways is a free resource funded by PH Capital Advisory.

General information only. Check the current official source and speak with the relevant adviser before acting.

General information only. Confirm current criteria, rates, caps and process on official pages before you apply, claim or act.

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