Ngā tangohanga mō ngā whakapaunga taiao Environmental expenses

You can claim environmental expenses in certain situations.

When you can claim expenses

To claim expenses, all of the following conditions must apply: 

• Your business is in New Zealand.
• As part of that business, or when you are ending business operations, you incur expenses to avoid, fix, or reduce the damaging effects of contaminated discharge or making noise.
• The expenses do not include reclaiming land, non-environmental dredging, or expenses related to the buying or acquiring of land.
• The expenses do not relate to revenue account property.
• No other provision allows a deduction for the expenses.

Deduction rates

Default deduction rates cover 4 cost categories

If the default deduction rates do not give the correct calculation and taxation of income from business activities, you can apply to us for a category-specific rate.

Destruction or closure

If an environmental improvement is destroyed or a business closes, you can claim the remaining balance of the expense - the original cost minus any deduction you’ve already claimed.