Australia R&D Tax Incentive (Income Tax Assessment Act 1997 Division 355) 355-440: ss 355-435, 355-440 and 355-450 Claw back the offset benefit for government recoupments of R&D expenditure

When the R&D entity, or a connected or affiliated entity, receives or becomes entitled to a recoupment (such as a grant) from an Australian government agency or a State or Territory body (an STB under Division 1AB of Part III of the ITAA 1936), other than under the CRC program, of expenditure on activities, or that requires project expenditure on activities, and that expenditure or related asset decline in value produced an offset, the entity includes in assessable income the amount worked out under s 355-450 from the difference between the offset obtained and the offset recalculated without the clawback amount, with the clawback amount reduced by repayments and, for project funding, capped by the R&D share of the net recoupment.