R&D funding

2021-22 Project Grants

open this image in new window: Growth Grants

Is your business new to, or trying to expand your R&D? A Project Grant can help you take on larger or more challenging R&D.

PLEASE NOTE: This page provides information about the FY22 Project Grant settings which apply from 13 July 2021. Please see the 2018-20 Project Grants page for information on the settings being phased out from 9 July 2021.

 

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How can the grant help me?

The Project Grant is designed to help you:

  • Build your R&D expertise by giving your business an opportunity to push the boundaries and uncover new scientific or technical knowledge and understanding
  • Break new ground in an R&D project for the development of new or substantially improved devices, products, processes, systems or services
  • Develop your business into a stable and substantial R&D performer
  • Grow your investment in R&D.

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How does it work?

Your business will:

  • Typically receive 40% of your eligible R&D project costs; reducing for large projects, or if the business has had a previous large grant.
  • Only receive funding for R&D done in New Zealand (unless pre-approved)
  • Receive payment in arrears (monthly or quarterly).

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Who can apply?

To apply for a Project Grant, your business must be one of the following:

  • Incorporated in New Zealand and registered under the Companies Act. Note that companies registered on the Overseas Register are not eligible for funding.
  • Registered under the Limited Partnerships Act.
  • A Māori incorporation or trust established under the Te Ture Whenua Māori Act, a trust set up to manage assets as part of a Treaty of Waitangi settlement, a Māori statutory body, or a business controlled by one or more of these entities.
  • Charitable Trusts can apply for funding only if they meet the business criteria above and satisfy all other criteria.

To qualify from 13 July 2021, under the 2021-22 Project Grant settings, your business must also:

  • Meet financial and due diligence requirements.
  • Not have had more than $300k R&D spend in either of the last two years.
  • Not have been conducting R&D for more than 2 full financial years - ie you are new to R&D.
  • Not have received funding under a Growth Grant contract within 2 years of the Growth Grant contract maturity date.
  • Under our new settings a business cannot receive more than two project grants from Callaghan Innovation. If you have received grant funding for two project grants previously, you are no longer eligible for funding under this scheme. 

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How do I apply?

You can apply under the new settings from 13 July 2021. Talk to us and we’ll help you through the process. 

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Have you considered the R&D Tax Incentive?

In March 2021, refreshed guidelines on what constitutes R&D expenditure under the R&D Tax Incentive (RDTI), which will appeal to a wider range of businesses. 

In addition to this, under a recent RDTI law change, Project Grant recipients may now be able to claim the RDTI for R&D expenditure that is greater than the amount specified in their Project Grant agreement. Businesses will still need to satisfy all other RDTI eligibility requirements if they are considering making a claim. For further information, read the RDTI information for Project Grant recipients fact sheet on the RDTI Hub

The Minister of Revenue has agreed to extend due dates for years one and two (2019-20 and 2020-21) of the RDTI to give businesses more time to consider how the RDTI eligibility criteria applies to their activities and to make an application. The Minister will include a due date extension to 31 August in the next tax Bill for:

  • year one (2019-20 income year) supplementary returns to 31 August 2021; and
  • year two (2020-21 income year) general approvals and criteria and methodologies (CAM) approvals.

For further information, read the 25 June 2021 news update on the RDTI Hub.

Project Grant guidelines

PDF icon Guidelines: Project Grants Funding Agreement.pdf

PDF icon Guidelines: Describing your R&D in your Project Grant Application.pdf

File Are you ready to talk about project grants?

File Project-Grant-Application-Template-2021.docx

 

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FAQs

How do I calculate eligible R&D project costs?

As a starting point, consult the Eligible costs for Project Grants guideline to help clarify eligible and ineligible R&D project costs.

If I have a R&D Loan, can I apply for a project grant?

Yes you may apply for a project grant but note that you may be required to repay a portion of the loan as you cannot receive more than 100% government funding for your project

How do I describe my R&D in my application?

Check out our guide below to help you describe your R&D in order to meet the Project Grant criteria. 

How do I calculate eligible R&D project costs?

As a starting point, consult the Eligible costs for Project Grants guideline to help clarify eligible and ineligible R&D project costs.

If I have a R&D Loan, can I apply for a project grant?

Yes you may apply for a project grant but note that you may be required to repay a portion of the loan as you cannot receive more than 100% government funding for your project

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2021 Project Grant changes

What’s happening?

We are introducing changes to the R&D Project Grant eligibility settings and cost increase variations.

Why is this happening?

The new settings will help us manage increased demand for Project Grants and ensure a fair allocation of the remaining Project Grant funding pool to the end of FY22. 

What are the new settings?

Please see the 2021 Project Grant webpage for more information. The new settings are focused on a key objective of the Project Grant scheme - that is to develop businesses with less established R&D programmes into stable and substantial R&D performers.

  • Businesses must not have had more than $300k R&D spend in either of the last two years.
  • Businesses must not have been conducting R&D for more than 2 full financial years - ie they are new to R&D
  • We will also be discontinuing cost increase variations (last day 9 July)
  • Under our new settings, a business cannot receive more than two project grants from Callaghan Innovation. If you have received grant funding for two project grants previously, you are no longer eligible for funding under this scheme. 

When is this happening?

We will be introducing the changes from 9 July with a number of key deadlines leading up to 31 July when final applications under the current settings are due. Please see the FAQs below to understand key deadlines. 

What if I had intended to seek a cost increase variation?

Please talk to your customer manager immediately so that they can start the process by 12pm, 9 July. We will be assessing these with the usual rigour. 

Do I need to do anything if I qualify under the new settings?

If you qualify under the new settings and are wanting to apply for a Project Grant, you will be able to apply via the new application form from 13 July.

If you have already started an online application in the current system, and won’t be able to complete it by 31 July, please restart your application when the new application form opens on 13 July. You will then be able to submit your application anytime after 31 July.

What do I need to do if I want to apply under the 2018-21 Project Grant settings?

Applications under the current settings must be fully completed, with all supporting documents, by 31 July. If you have not started an application, you have until 12pm, 9 July - following which we will only be accepting new applications under the new settings.

What if I have already started an application in the online portal?

Please check with your customer manager to make sure your application is in the system. You have until 31 July to fully complete your application online, with all supporting documents.

What if I need longer to submit my application?

If you are wanting to apply under the current settings, you will need to complete your application in the online portal by 31 July. 

If you qualify under the new settings, you will need to start a new application on 13 July which allows you to submit your application after 31 July.

Does the application under the 2018-21 Project Grant settings need to be fully complete by 31 July?

To be considered under the current settings, applications must be fully complete, with all supporting documents, by 31 July.

What if I haven’t started an application in the online portal, but was considering applying in this period?

You need to start your application in the online portal by 12pm, 9 July. After this, no new applications will be accepted under the current settings. You will then have until 31 July to fully complete your application online, with all supporting documents.

What if I don’t have a customer manager?

Please email info@callaghaninnovation.govt.nz with the subject heading ‘New Project Grant Application’ and your business name. 

What if I’m unsure of the status of my application?

If you are unsure of the status of your application, please contact your PRM/RBP. 

Updated: 21 July 2021