RESEARCH AND DEVELOPMENT GRANTS
Research and Development Project Grant
Callaghan Innovation administer the Government's Business R&D Grants. They advise that Research and Development Project Grants are for firms with smaller R&D programmes and those that are new to R&D. The purpose of the grants is to support more R&D activity in New Zealand. The programme helps companies exploit emerging areas of science and technology. These grants can help address technical feasibility, commercial feasibility and proof of concept research. For guidance and advice on applying for this grant contact us.
Eligible Businesses
To be eligible for Callaghan Innovation R&D funding the business must be registered under the Companies Act 1993, or a Limited Partnership under the Limited Partnership Act 2008.
Callaghan Innovation administer the Government's Business R&D Grants. They advise that Research and Development Project Grants are for firms with smaller R&D programmes and those that are new to R&D. The purpose of the grants is to support more R&D activity in New Zealand. The programme helps companies exploit emerging areas of science and technology. These grants can help address technical feasibility, commercial feasibility and proof of concept research. For guidance and advice on applying for this grant contact us.
Eligible Businesses
To be eligible for Callaghan Innovation R&D funding the business must be registered under the Companies Act 1993, or a Limited Partnership under the Limited Partnership Act 2008.
Research Defined
Research is defined as original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. R&D is distinguished from non-R&D by the presence or absence of an appreciable element of innovation. If the activity departs from routine or breaks new ground it is normally R&D; if it follows an established pattern it is normally not R&D. R&D undertaken outside New Zealand is not an eligible cost except in limited cases. The following are examples of activities that would typically be included in research:
Research is defined as original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. R&D is distinguished from non-R&D by the presence or absence of an appreciable element of innovation. If the activity departs from routine or breaks new ground it is normally R&D; if it follows an established pattern it is normally not R&D. R&D undertaken outside New Zealand is not an eligible cost except in limited cases. The following are examples of activities that would typically be included in research:
- Research aimed at discovery of new knowledge;
- Searching for applications of new research findings or other knowledge;
- Formulation and design of possible new or improved product or process alternatives;
- Testing in search of product or process alternatives.
Development Defined
Development is defined as the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. The following are examples of activities that would typically be included in development:
How Much Funding is Available?
Normally 40 percent co-funding is available for a single distinct project. The value of the R&D Project Grants normally range between $20K and $250K. Co-funding of 40% is available for the first $800k and then 20% for the remainder.
On-Line Application
The grant application is submitted on-line on your Callaghan Innovation IMS Client Portal.
Development is defined as the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. The following are examples of activities that would typically be included in development:
- Evaluation of product or process alternatives;
- Design, construction and testing of pre-production prototypes and models;
- Design of tools, jigs, moulds, and dies involving new technology, or operation of a pilot plant.
How Much Funding is Available?
Normally 40 percent co-funding is available for a single distinct project. The value of the R&D Project Grants normally range between $20K and $250K. Co-funding of 40% is available for the first $800k and then 20% for the remainder.
On-Line Application
The grant application is submitted on-line on your Callaghan Innovation IMS Client Portal.
Regional Business Partners
The first point of contact for these grants is through a network of Regional Business Partners. Callaghan Innovation's Regional Business Partners appointed to deliver this funding are listed on our business grants page. Contact the Regional Business Partner closest to you to discuss your project.
The first point of contact for these grants is through a network of Regional Business Partners. Callaghan Innovation's Regional Business Partners appointed to deliver this funding are listed on our business grants page. Contact the Regional Business Partner closest to you to discuss your project.
How we can help you Apply for the R&D Project Grant
We are experienced in helping companies apply for this grant. We use an agenda and template driven process. We can help you with the online documentation, on-line submission, reports and claims; and liaison with Callaghan Innovation. To learn more contact us.
We are experienced in helping companies apply for this grant. We use an agenda and template driven process. We can help you with the online documentation, on-line submission, reports and claims; and liaison with Callaghan Innovation. To learn more contact us.
Information about the R&D Project Grant sourced from Budget 2013 documents, and the Ministerial Direction for Business R&D Grants released in December 2015. Research and Development is defined by the New Zealand Equivalent to International Accounting Standard 38, Intangible Assets (NZIAS 38) and Financial Reporting Standard No 13, (Issued by the Financial Reporting Standards Board Institute of Chartered Accountants of New Zealand, under the Financial Reporting Act 1993).
Research and Development Growth Grant
The R&D Growth Grant will be closed to new applicants on 31 March 2019 when the R&D Tax Credit is implemented.
What is happening to Callaghan Innovation’s R&D Growth Grants?
The Government is committed to supporting companies, including Growth Grants recipients, to continue to grow their investment in R&D. Businesses with an active Growth Grant on 31 March 2019 will continue receiving their grant until 31 March 2020. A temporary grant scheme mirroring the R&D Tax Incentive will be implemented to provide support for Growth Grant recipients with insufficient tax liability to use an R&D tax credit immediately. The Growth Grant scheme will be closed to new applicants on 31 March 2019.
"On 19 April 2018, the Minister for Research, Science and Innovation announced the proposed implementation of a Research and Development tax incentive for New Zealand. It is proposed that the Growth Grant will be phased out over time with the introduction of the Tax Incentive, but will continue as normal until final decisions are made by the Government. It is being phased out because the Growth Grant and Tax Incentive fund similar types of activity and have a similar purpose.
The details of the Tax Incentive and proposed transition arrangements for Growth Grant customers were subject to public consultation which closed on Friday 1 June 2018. We are expecting decisions on both the Tax Incentive and transitional arrangements by mid-July".
What is happening with Callaghan Innovation other services and grants?
All of Callaghan Innovation’s other services and products, including R&D Project Grants and R&D Student Grants are not affected by this initiative.
Source: MBIE, April 2018. Source: Callaghan Innovation.
The R&D Growth Grant will be closed to new applicants on 31 March 2019 when the R&D Tax Credit is implemented.
What is happening to Callaghan Innovation’s R&D Growth Grants?
The Government is committed to supporting companies, including Growth Grants recipients, to continue to grow their investment in R&D. Businesses with an active Growth Grant on 31 March 2019 will continue receiving their grant until 31 March 2020. A temporary grant scheme mirroring the R&D Tax Incentive will be implemented to provide support for Growth Grant recipients with insufficient tax liability to use an R&D tax credit immediately. The Growth Grant scheme will be closed to new applicants on 31 March 2019.
"On 19 April 2018, the Minister for Research, Science and Innovation announced the proposed implementation of a Research and Development tax incentive for New Zealand. It is proposed that the Growth Grant will be phased out over time with the introduction of the Tax Incentive, but will continue as normal until final decisions are made by the Government. It is being phased out because the Growth Grant and Tax Incentive fund similar types of activity and have a similar purpose.
The details of the Tax Incentive and proposed transition arrangements for Growth Grant customers were subject to public consultation which closed on Friday 1 June 2018. We are expecting decisions on both the Tax Incentive and transitional arrangements by mid-July".
What is happening with Callaghan Innovation other services and grants?
All of Callaghan Innovation’s other services and products, including R&D Project Grants and R&D Student Grants are not affected by this initiative.
Source: MBIE, April 2018. Source: Callaghan Innovation.
R&D Growth Grant Available to 31 March 2019
Callaghan Innovation administer the government's Business R&D Growth Grants. Businesses with a minimum of $300,000 of annual R&D spending in New Zealand, and at least 1.5 per cent of revenue spent on R&D over the last two years will be eligible. After two years of funding, businesses can be re-assessed for a further three years of funding. The cap on funding will be $5 million per business, per year. Businesses will be required to submit R&D plans, which Callaghan Innovation will review and discuss with applicants.
Eligible Businesses
To be eligible for Callaghan Innovation R&D funding the business must be registered under the Companies Act 1993, or a Limited Partnership under the Limited Partnership Act 2008.
In addition, applicants for the R&D Growth Grant must have at least $300,000 in eligible R&D expenditure in each of the two most recent financial years; and have had eligible R&D expenditure of at least 1.5 per cent of revenues in each of the two most recent financial years; and meet financial and management due diligence requirements to a standard sufficient to justify a three year government investment (including, but not limited to, financial viability and suitable management capability); and provide Callaghan Innovation with an R&D plan, including an estimate of R&D expenditures over the next three years. Businesses must compile the R&D plan to a level of detail and clarity sufficient to measure the progress of the project over time.
Callaghan Innovation administer the government's Business R&D Growth Grants. Businesses with a minimum of $300,000 of annual R&D spending in New Zealand, and at least 1.5 per cent of revenue spent on R&D over the last two years will be eligible. After two years of funding, businesses can be re-assessed for a further three years of funding. The cap on funding will be $5 million per business, per year. Businesses will be required to submit R&D plans, which Callaghan Innovation will review and discuss with applicants.
Eligible Businesses
To be eligible for Callaghan Innovation R&D funding the business must be registered under the Companies Act 1993, or a Limited Partnership under the Limited Partnership Act 2008.
In addition, applicants for the R&D Growth Grant must have at least $300,000 in eligible R&D expenditure in each of the two most recent financial years; and have had eligible R&D expenditure of at least 1.5 per cent of revenues in each of the two most recent financial years; and meet financial and management due diligence requirements to a standard sufficient to justify a three year government investment (including, but not limited to, financial viability and suitable management capability); and provide Callaghan Innovation with an R&D plan, including an estimate of R&D expenditures over the next three years. Businesses must compile the R&D plan to a level of detail and clarity sufficient to measure the progress of the project over time.
Applied Support Services can help you prepare your Research and Development Growth grant documentation. This includes the following:
- Identifying your qualifying R&D expenditure as defined by the NZ equivalent to the International Accounting Standard (NZIAS 38)
- Calculating your firm’s average R&D intensity ratio and average revenues over the past two years
- Documentation of your R&D capability
- Documentation of the wider economic benefit of the outcomes of your research
- Preparing responses to the key criteria questions
- Preparing your R&D project plan, objectives, milestones and budget
- Assistance preparing the required pre-contract and contract Financial Information
- Liaison with your financial controller and accountant where required
- Submission of your grant application
Student R&D Grants
The eligible expenditure funded under the different student grants is normally limited to the wages and salary of the student, a tax-free stipend for the student, a tertiary administration fee and, when the business is located a significant distance from the tertiary institute, a travel allowance for the student.
The eligible expenditure funded under the different student grants is normally limited to the wages and salary of the student, a tax-free stipend for the student, a tertiary administration fee and, when the business is located a significant distance from the tertiary institute, a travel allowance for the student.
How we can help you Obtain R&D Funding
We use an agenda and template driven process to help companies apply for these R&D grants. We provide consulting and advisory services to help you, and your team, with the business case preparation, online documentation, on-line submission, reports and claims; and liaison with Callaghan Innovation staff and representatives. To learn more contact us.
We use an agenda and template driven process to help companies apply for these R&D grants. We provide consulting and advisory services to help you, and your team, with the business case preparation, online documentation, on-line submission, reports and claims; and liaison with Callaghan Innovation staff and representatives. To learn more contact us.
Useful Links: Research and Development Grants
Callaghan Innovation
Ministry of Business, Innovation and Employment (MBIE)
New Zealand Intellectual Property Office
Help preparing business plans
Help planning business projects
Help planning and managing research and development projects
This page was last updated on 2 August 2018