NEW ZEALAND GAZETTE, No. 132 — 3 DECEMBER 2015

2. Research and Development Project Grants.
3. Research and Development Student Grants.

Business Eligibility Criteria

To be eligible for funding under this tool the following criteria must be satisfied together with the eligibility criteria relevant to the specific initiative:

• Only businesses are eligible to receive funding via this tool. A business or group of businesses may nominate a representative to receive funding.

• The business must be one of the following entities:

  • A company registered under the Companies Act 1993;
  • a limited partnership registered under the Limited Partnerships Act 2008; or
  • a Māori incorporation or a trust established under Te Ture Whenua Maori Act 1993, a trust established on behalf of Māori claimants to receive and manage assets as part of the settlement of a claim under the Treaty of Waitangi, a Māori statutory body, or a business that is controlled by one or more of these types of Māori entities.

• Businesses may not be an entity listed in Schedule 1 of the State Owned Enterprises Act 1986 or listed in Schedule 4A of the Public Finance Act 1989 or an entity established under or governed by the Education Act 1989, Crown Research Institutes Act 1992, Local Government Act 2002, Local Government (Auckland Council) Act 2009, the New Zealand Public Health and Disability Act 2000, or the Crown Entities Act 2004, or an entity that is 50 per cent or more owned by one or more of those types of entities.

• Callaghan Innovation must be satisfied that providing an R&D grant to the business would not bring the reputation of Callaghan Innovation or the R&D grants programme into disrepute.

Claw-back Provisions

Businesses may be expected to return some or all grant funding, during or following a grant agreement, to Callaghan Innovation, if:

• The business breaches any grant agreement, misappropriates funding, provides incorrect information to Callaghan Innovation, or claims ineligible expenditure;
• the business enters into a contract or arrangement (including change of ownership) that materially reduces the current or future planned research and development activity in New Zealand; or
• the grant fund is unspent and for which contractual liabilities have not yet been incurred.

Criteria relating to each initiative are set out in the following sections.

1. Research and Development (R&D) Growth Grants

Policy Objective

The objective of this initiative, in addition to the overall policy objective of the business-led R&D tool, is to provide a rules-based, market-led incentive for increasing R&D investment in businesses that are experienced in investing in R&D.

Eligibility Criteria

In addition to the Business Eligibility Criteria stated earlier, to be eligible to receive funding a business must:

• have had at least $300,000.00 in eligible R&D expenditure (stated below), excluding any R&D funded by Callaghan Innovation, Ministry of Business, Innovation and Employment and other New Zealand central and local government funding sources, in each of the two most recent years;
• have had eligible R&D expenditure of at least 1.5 per cent of revenues in each of the two most recent years;
• meet financial and management due diligence requirements sufficient to justify three years of funding; and
• provide Callaghan Innovation with an R&D plan including an estimate of R&D expenditures over the next three years. Businesses must compile the R&D plan to a level of detail and clarity sufficient to assess

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