In Budget 2026 (delivered 28 May 2026) the Government confirmed the R&D Tax Incentive will introduce quarterly in-year payments so businesses receive the 15% credit during the year instead of waiting until tax-year end. At the same time the cap on eligible non-administrative internal software R&D is being cut from $25 million to $3 million. Both core changes apply from the 2027-28 income year.
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NZ Budget 2026: RDTI adds in-year payments, cuts internal-software cap to $3m
Why this matters for founders
Software and deep-tech founders claiming the RDTI should model the improved cashflow from quarterly payments into their runway, but larger internal-software R&D programmes need to plan around the sharply lower $3m internal-software cap before the 2027-28 year.
Source: Beehive.govt.nz (NZ Government)
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