New Zealand’s Investment Boost Tax Incentive: In an effort to stimulate local businesses, the New Zealand government has announced the Investment Boost Tax Incentive, designed to promote investment in productive assets, including vital machinery, tools, and equipment. This initiative aims to empower businesses to enhance their operations and drive growth across various sectors.
Effective on May 22, 2025, this incentive allows businesses to deduct 20% of the value of new assets from their taxable income for the year, in addition to the standard depreciation practices.
Key Features of the Incentive:
- Eligible Assets: The program is limited to new assets or assets that are new to New Zealand.
- Usage Requirement: Eligible assets must be used for income-generating activities.
- Type of Deduction: It's important to note that the 20% deduction is not a tax credit but a direct reduction in taxable income.
Recent discussions with our accountant have confirmed that not only can businesses invest in general equipment, but agricultural projects, particularly those focused on enhancing water efficiency, are also eligible for this incentive. New pumps and projects aimed at improving water use and productivity on farms or in businesses qualify as depreciable assets.
This includes enhancements to water systems and developments in horticulture and aquaculture. For agents and businesses considering these projects, this is a compelling opportunity to encourage investment over the winter season.
Track Industries stands ready to support these initiatives with a broad range of proven and reliable piston/reciprocating pumps. Our products are designed with efficiency in mind and are well-suited for various water management needs. You can explore our comprehensive pump range here.
Beyond our standard pumps, we also manufacture Well Riser Flanges, Deep Well Gearing Pumps, and Deepwell Cylinders, catering to the requirements of water management and efficiency projects.
We invite all agents and businesses to consider the benefits of this new tax incentive carefully. Take the time to discuss how Track Industries can assist you and your clients in leveraging these opportunities. If you have any questions or would like to explore collaborative projects, please reach out.
This investment boost is not just an opportunity—it's a pathway toward a more sustainable and productive future for New Zealand's businesses. Let’s seize this opportunity together!
Visit this article for more details on the tax incentive and its eligibility criteria.
*Disclaimer: While Track Industries provides valuable information, we recommend consulting with professional advisers to ensure the suitability and value of the Investment Boost initiative for individual business needs.
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