A taxpayer will be allowed a deduction of 150% off any expenditure actually incurred for purposes of

The discovery of novel, practical and non-obvious information of a scientific or technological nature; or
The devising, developing, or creating of any invention as defined in Section 1 of the Patents Act, 1978, any design as defined in Section 1 of the Designs Act, 1993, or any computer programme as defined in Section 1 of the Copyright Act, 1978, or other similar property of a scientific or technological nature.

A deduction will be allowed in respect of any building, machinery, plant, implement, utensil and article used for purposes as described above, equal to 50% of the cost of that building, etc. in the yearof assessment that it is brought into use for the first time, 30% in the first succeeding year of assessment and 20% in the second succeeding year of assessment. If any building was used partly for those purposes and partly for other purposes in the same year of assessment, the allowance for that year is limited to the same proportion of the total capacity of the building used for the abovementioned purposes.

These benefits are claimable in a taxpayer's current year of assessment, as well as in respect of his previous two years of assessment.

This programme is limited to SMME's.
Private, taxpaying manufacturing entities can qualify.
Assistance is a 50% taxable, non-refundable grant on the direct cost of pre-competitive development activities up to R1.5 million per project.
High risk/high potential return projects are preferred to ones that could obtain commercial funding.
Qualifying expenses incurred after date of submission of an application may be considered for payment.
Payment will take place on achievement of no more than three pre-determined milestones per approved project.
A project or process must be better than what is available on the international market. Better may also mean cheaper.