New Government Investment Boost for Commercial & Industrial Steel Builds

A new initiative from the New Zealand Government could make your next commercial or industrial building project even more cost-effective. The recently announced Investment Boost allows businesses to immediately deduct 20% of the cost of eligible commercial or industrial buildings from their taxable income in the year the building is first used.

What Does This Mean for You?

In simple terms, this creates a real tax advantage, effectively reducing your total building cost by around 5.6%.

Here’s an example:

• Building Cost: $300,000 commercial/industrial building
• Tax Deduction: 20% ($60,000) can be deducted from taxable income
• Tax Savings: $16,800 (28% of $60,000)
• Effective Benefit: 5.6% of the total $300,000 building value

This initiative, alongside easing interest rates, puts businesses in a strong position to start property developments with more favourable cash flow.

Who Can Benefit?

If you’re planning a new commercial or industrial building for your business, this incentive could apply provided the building is first available for use after 22 May 2025.

Whether you’re expanding your operations, building new business offices, or upgrading storage facilities, KiwiSpan can help you build smarter and make the most of this incentive.

Frequently Asked Questions

Can I claim this for a mixed-use building?
Yes, but only on the business-use portion. Private use areas are excluded.

Are residential buildings included?
No. This boost is for new commercial and industrial buildings. Some exceptions apply (e.g. hotels, hospitals, and rest homes).

What if my project is already underway?
As long as the building is first used on or after 22 May 2025, you will still qualify.

What if I make a loss this year?
The deduction increases your tax loss, which can be carried forward to offset future profits.

Are capital upgrades eligible?
Yes. Major improvements like strengthening or significant expansions may qualify if the base building is eligible.

Can I also combine this with R&D tax credits?
Yes. This deduction may be included as eligible R&D expenditure.

Time to Build Smarter

This is a great opportunity for businesses looking to upgrade. Whether you’re planning a standalone commercial build or expanding a current site, the team at KiwiSpan is ready to help you get the most from your investment while delivering a steel structure built to last.

We’ve built our reputation on delivering quality steel buildings for every type of customer from lifestyle sheds to rural workshops to commercial developments. If you’ve been considering a business build, now’s the time to start the conversation.

Important Note

This blog summarises information from Inland Revenue (IRD). It does not constitute financial or tax advice. KiwiSpan recommends consulting your accountant or tax advisor to understand how the Investment Boost applies to your specific circumstances.

Learn more from IRD:

• New Asset Investment Boost – IRD
• IRD Info Sheet

Thinking about your next commercial or industrial project?

Get in touch with the KiwiSpan team today, we’d love to help you plan a smart build that makes the most of this government incentive.