Your Complete Guide to NZ’s Investment Boost Program and Truck Finance Opportunities

New Zealand businesses are entering an exciting new phase with the launch of the Investment Boost tax incentive, a highlight of the 2025 Budget. Introduced on May 22, 2025, this initiative is designed to ignite investment in new assets like trucks, machinery, and equipment, driving productivity, job creation, and wage growth across the nation. At CredSol Financial Services, we’re thrilled about how this aligns seamlessly with our expertise in truck finance, offering a golden opportunity for businesses in logistics, construction, and beyond to thrive. In this article, we’ll explore the Investment Boost, uncover its benefits, and reveal how pairing it with CredSol’s truck finance solutions can put more money back in your pocket—starting today.

What’s the Investment Boost All About?

The Investment Boost empowers New Zealand businesses to claim an immediate 20% deduction on the cost of eligible new assets from their taxable income, in addition to standard depreciation on the remaining 80%. This optional incentive is available to all tax-paying businesses, with no limits on size or asset value, and applies to assets first used on or after May 22, 2025.

What Qualifies?

Eligible Assets: This includes new trucks, excavators, machinery, and commercial buildings. Even imported used assets (new to NZ) are eligible, though second-hand assets already in the country don’t qualify. Exclusions cover residential properties, land (except certain improvements like farm fencing), and most intangibles like patents.
How to Claim: Simply record the deduction as an expense in your tax return for the purchase year. If you sell the asset later for more than its adjusted tax value (except for land improvements), you may need to repay a portion of the deduction.
Economic Impact: This policy is poised to lift GDP by 1% and wages by 1.5% over 20 years, with significant gains in the first five. It’s a $1.7 billion annual investment in New Zealand’s economic future, delivering real growth for businesses like yours.

Far more than a tax break, this is a bold step to build confidence and momentum, especially in a market facing high interest rates and supply chain challenges.

How It Works: A Real-World Example

Without the Investment Boost, depreciation spreads deductions over an asset’s life (e.g., 20% straight-line over 5 years). With the Boost, you get 20% upfront plus depreciation on the rest, giving you a cash flow boost from the start.

Example: $100,000 New Truck

Without Boost: Deduct $20,000 per year (20% depreciation). Year 1 tax savings (at 28% company rate): $5,600.
With Boost: Deduct $20,000 (Boost) + $16,000 (20% of remaining $80,000) = $36,000 in Year 1. Tax savings: $10,080. Years 2–5: $4,480 per year.
Extra Benefit: An additional $4,480 in Year 1—perfect for covering fuel, maintenance, or reinvestment without stretching your finances.

Over the asset’s life, total deductions remain $100,000, but the upfront savings provide money today—more valuable with inflation and opportunity costs in mind. For mixed-use assets (e.g., a van with personal use), simply prorate based on business use, and the advantage still holds strong.

Why Truck Finance with CredSol is Your Winning Strategy

At CredSol Financial Services, we’ve spent years empowering Kiwi businesses with tailored asset finance solutions—specializing in truck, equipment, and commercial options. Based in Auckland but serving clients nationwide, we draw on decades of mutual banking and credit expertise to deliver flexible, hassle-free financing that aligns with your cash flow needs.

Trucks are a perfect fit for the Investment Boost. In industries like transport and logistics—where tight margins and aging fleets are common—upgrading to new models is a game-changer. New trucks bring better fuel efficiency, lower emissions, and higher payloads, making 2025 the ideal time to invest.

The Truck Finance Advantage

Flexible Ownership: With CredSol’s truck finance options like hire-purchase or chattel mortgage, you own the asset outright and qualify for the full 20% deduction. No leasing limitations—claim the Boost on financed purchases from May 22, 2025 onward.
Tangible Savings: Finance a $300,000 truck fleet, and your Year 1 deduction soars to $108,000 ($60,000 Boost + $48,000 depreciation). At 28% tax, that’s $30,240 saved—more than enough to offset your first loan payment and fuel expansion.
Seize the Opportunity: With interest rates stabilizing and diesel prices unpredictable, 2025 is the perfect moment to upgrade. Our licensed advisors handle the details—due diligence, lender connections, and paperwork—ensuring a seamless experience.

Whether you’re a small haulier in Christchurch or a logistics leader in Wellington, CredSol simplifies the process. Just provide proof of ID, bank statements, and a sales agreement, and we’ll get you moving.

Take the Next Step with CredSol

The Investment Boost is a catalyst for growth, and truck finance is your key to unlocking its potential. At CredSol Financial Services, we’re dedicated to making it easy, empowering Kiwi businesses with reliable credit solutions for a brighter future.

Get a no-obligation truck finance quote today or visit our Auckland team at Level 1, 586 Great South Road, Ellerslie. Let’s transform tax savings into miles on the road.

Disclaimer: This is general information; consult your accountant or IRD for personalized tax advice. CredSol Financial Services Limited is not a tax advisor.

About CredSol Financial Services We’re your trusted partner in asset finance across New Zealand, specializing in truck, equipment, and commercial solutions. With a focus on efficiency and expertise, we help businesses thrive. Connect with us on LinkedIn for more insights.

Share this article to inspire your network’s next big move!