Nova Scotia Research and Development Tax Credit
no fixed amount
Tax credit
Description:
The Research and Development Tax Credit offers tax relief to Nova Scotia corporations that incur qualified scientific research and experimental development (SR&ED) expenditures made in Nova Scotia, as defined by the federal Income Tax Act.
Comments on Funding:
The credit is administered by Canada Revenue Agency (CRA) and is claimed in conjunction with federal SR&ED tax credits.
The Nova Scotia credit should be claimed on Schedule 340 for taxation years 1998 and later.
A 15 per cent rate is applicable to all corporations that incur SR&ED expenditures in Nova Scotia, regardless of size.
Rolling deadline
Eligibility:
This credit is based on qualified expenditures eligible for the federal SR&ED tax credit:
R&D credit applicant is advised to prepare the federal SR&ED credit filing in preparation for the provincial credit
1. Federal credit is claimed on form T661
2. Nova Scotia tax credit is claimed on schedule 340 of your Nova Scotia T2 form
The federal credit rules are detailed and potential claimants are advised to review federal documentation regarding the SR&ED credit
Application Steps:
The applicant:
1. is advised to prepare the federal SR&ED credit filing in preparation for the provincial credit (Federal credit is claimed on form T661);
2. must claim the Nova Scotia tax credit on schedule 340 of his/her Nova Scotia T2 form.
Documentation Needed:
Applicants must submit the Nova Scotia T2 form.
Other Things to Note:
The credit is administered by Canada Revenue Agency (CRA) and is claimed in conjunction with federal SR&ED tax credits.
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