In Budget 2026 (announced 28 May 2026), the NZ Government is changing the Research and Development Tax Incentive to introduce in-year payments, so businesses receive the 15% R&D tax credit during the year instead of waiting until year-end. It also cuts the cap on non-administrative internal software R&D expenditure from $25 million to $3 million, with the package netting $84.6m in savings over 2025/26-2029/30.
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NZ Budget 2026: R&D Tax Incentive adds in-year payments, cuts software cap
Why this matters for founders
R&D-active NZ founders can now claim RDTI credits in-year to ease cash flow, but startups whose core work is internal software should reforecast eligible spend against the new $3m cap and check IRD's April 2026 IR1240 guidance before filing.
Source: Beehive.govt.nz (NZ Government)
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