You’ve heard about the new
Investment Boost, but have you considered how you could use it to support your business's environmental goals?
From 22 May 2025, businesses can claim an additional 20% deduction on new eligible assets in the year they’re first used, with the remainder depreciated over time. There’s no cap on the value of eligible investments, and the opportunity is open to all business types across New Zealand.
What many businesses don’t realise is that this isn’t just a tax incentive, it’s a perfect chance to invest in smarter, greener, and more efficient assets.
Why Go Sustainable?
Sustainable assets can reduce ongoing energy and maintenance costs, enhance your brand’s reputation, and support compliance with growing environmental expectations from clients, regulators, and investors.
Consider using the Investment Boost for:
- Electric or hybrid vehicles to future-proof your fleet
- Solar panels or battery storage systems to lower energy bills
- Smart lighting, energy-efficient HVAC, or factory equipment
- Water-efficient irrigation or waste-reduction systems
- Modern office fit-outs with lower carbon footprints
These types of investments aren’t just good for the environment, they often pay for themselves over time. However, it's important to note that if an asset is later sold for more than its book value, depreciation recovery income may arise and be taxable.
Example 1:
ABC Electrical Ltd recently replaced a service van that had reached the end of its life and chose to invest in a new electric vehicle instead of another petrol model. The van cost $85,000 (excluding GST), and under the Investment Boost, the business was able to claim an immediate $17,000 deduction (20%) in the 2026 tax year, with the remaining $68,000 depreciated over time.
This not only reduced their taxable income but also supported their move toward lower operating costs, improved environmental performance, and enhanced brand reputation. The Investment Boost made the transition to a more sustainable fleet a financially smart decision.
Example 2:
A professional services firm undertaking a planned office renovation chose to invest in a more sustainable fit-out. This included LED lighting, energy-efficient HVAC systems, recycled and low-emission materials, and smart automation to reduce power usage. The total cost of the fit-out was $150,000 (excluding GST).
Under the Investment Boost, the firm claimed a $30,000 upfront deduction (20%) in the 2026 tax year, with the remaining $120,000 depreciated under standard rules. By prioritising low-carbon materials and energy-saving infrastructure, the business improved its environmental impact, enhanced workplace comfort, and reduced long-term operating costs, while gaining an immediate tax benefit.
Future-Proof Your Business
Although there is currently no fixed end date for the Investment Boost, it remains a government policy, and as with any policy, there’s always a possibility it could change over time.
If your business is considering capital upgrades or sustainability-focused investments, it’s worth taking advantage of the incentive while it’s available.
We're Here to Help
If you’re planning capital purchases or considering a shift toward more sustainable operations, now is the time to act.
Get in touch with your local Moore Markhams expert so we can help you take advantage of the Investment Boost, and invest in a more sustainable future for your business.