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Investment Boost is a new tax deduction for businesses. From 22 May 2025, businesses can claim 20% of the cost of new assets as an expense, then claim depreciation as usual on the remaining 80%.
What you can claim
Businesses can claim a 20% deduction for the costs of new (or new to New Zealand) business assets that were purchased — or finished being constructed — on or after 22 May 2025.
Eligibility
- The asset is new or new to New Zealand.
- The asset is available for business use on or after 22 May 2025.
- The asset is depreciable for tax purposes.
You can also claim for
- New commercial and industrial buildings.
- Improvements to depreciable property (but not residential buildings).
- Primary sector land improvements.
- Assets arising from petroleum development expenditure and mineral mining development.
- Expenditure incurred on or after 22 May 2025 (except rights, permits, or privileges).
- Mixed-use assets.
There is no limit to the value of new investments you can claim Investment Boost for.
What you cannot claim
You cannot claim Investment Boost for:
- Second-hand assets that are sourced from New Zealand.
- Residential rental buildings.
- Most fixed-life intangible assets (such as patents).
How to claim
You can claim Investment Boost in your income tax return for the year you buy a new asset. Record the Investment Boost amount the same way as depreciation and include it in your Financial Statements Summary (IR10) or financial accounts.
Example: If you buy a new asset for $10,000 on 23 May 2025, include the Investment Boost amount of $2,000 (20%) as depreciation in Box 52 on your Financial Statements Summary (IR10).