Last year's budget announcements confirmed that the Government would introduce a Research and Development tax credit regime for the 2008/9 year.   Under the regime, qualifying companies  could benefit from a tax credit of 15% of annual expenditure. 

Full information on this scheme is available through the IRD (see link below).  In brief, it applies to:

• Businesses undertaking R&D in excess of $20,000 eligible expenditure for the year and where R&D is carried out in NZ.
• R&D which is defined as ?systematic, investigative and experimental' which seeks to resolve scientific or technological uncertainty or that involves an appreciable element of novelty and that it is carried on for the purposes of acquiring new knowledge or creating new or improved materials, products, devices, processes or services' [see MORST link below]  Businesses must test a defined hypothesis.
• Activities that support R&D may also qualify for the tax credit.

Businesses, partnerships, sole traders and other entities must apply by claiming back the 15% in their annual income tax returns.  For more information, register to attend Auckland City Council's seminar on the R&D tax credit (see below for link) or view the following sites:
http://www.morst.govt.nz/publications/a-z/r/rd-qa/
http://www.ird.govt.nz/rd-tax-credit/