New Brunswick Research and Development Tax Credit
The enhanced NB R&D tax credit of 15% is fully refundable, meaning that the credit benefits New Brunswick corporations even if the corporation does not have provincial taxes owing.
The new enhanced NB R&D tax credit, as with the previous tax credit, is applied to Scientific Research and Experimental Development (SR&ED) expenditures as defined by the federal Income Tax Act.
Offered by Department of Finance and Treasury Board
Amount
15 percent of eligible expenditures
15 percent of eligible expenditures, fully refundable
Quick eligibility check
Who can apply
- New Brunswick corporations
- Scientific Research and Experimental Development (SR&ED) expenditures as defined by the federal Income Tax Act
About the funding
New Brunswick's Research and Development (R&D) tax credit has been increased from 10 percent to 15 percent of eligible expenditures effective January 1st, 2003, and made fully refundable.
The enhanced NB R&D tax credit of 15% is fully refundable, meaning that the credit benefits New Brunswick corporations even if the corporation does not have provincial taxes owing. The refund amount is equal to the amount of the credit in excess of tax otherwise payable under the New Brunswick Income Tax Act . The new credit no longer has to be carried forward or carried back because it is fully refundable.
Eligible expenditures for SR&ED Incentives
:
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- Experimental development - This is the work done to achieve technological advancement to create, or improve, new materials, devices, products, or processes. Most SR&ED claims involve experimental development.
- Applied research - This is work done to advance scientific knowledge with a specific practical application in view.
- Basic research - This is work done to advance scientific knowledge without a specific practical application in view.
- Support work - This is work that directly supports and is commensurate with the needs of experimental development, applied research, and basic research. This includes only the following 8 specific types of work:
- - engineering;
- - design;
- - operations research;
- - mathematical analysis;
- - computer programming;
- - data collection;
- - testing; and
- - psychological research.
Eligible current and capital SR&ED expenditures include wages & salaries, materials, equipment, overhead costs and other expenditures incurred as a result of SR&ED initiatives.
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Investment Tax Credits (ITC) on Qualified Expenditures for Scientific Research and Experimental Development (SR&ED) | Tax Credit | Non-refundable ITC of 15% of the SR&ED qualified expenditure pool | Open |
| Scientific Research and Experimental Development Tax Incentive Program (SR&ED) | Tax Credit | Investment tax credit at a basic rate of 15% | Open |
