Investment Boost Deduction Calculator

This calculator works out the Investment Boost deduction on a new business asset in New Zealand and, most usefully, how much extra you can claim in the first year compared with normal depreciation alone. Investment Boost lets a business deduct twenty percent of a new eligible asset's cost immediately, then depreciate the remaining eighty percent as normal, which front-loads the deduction and reduces tax in the year you invest. The headline number people want is not just the total first-year deduction, but how much bigger that is than what they would have claimed anyway through ordinary depreciation, because that difference is the genuine extra benefit of the scheme. You enter the asset cost, its normal depreciation rate, and your company or marginal tax rate, and the calculator shows the first-year deduction with Investment Boost, the deduction you would have claimed without it, the extra deduction the boost provides, and the extra tax that saves you this year. Keep in mind the benefit is mainly about timing: because an asset's cost can only be deducted once, claiming more now means less depreciation later, so the real value is improved cash flow when you have just spent on the asset. Eligibility excludes land and residential buildings and can change, so confirm with IRD or your accountant. General information, not tax advice.

A timing benefit: more deduction now means less in later years. Eligibility excludes land and residential buildings. Confirm current rules with IRD. General information only.