Research and Development Tax Credit

By mmuise

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:

A 15% rate is applicable to all corporations that incur SR&ED expenditures in Nova Scotia, regardless of size. Refunds are available to corporations that incur qualified SR&ED expenditures in Nova Scotia where the corporation has or would have taxable income allocated to the Province, The refund amount is equal to the amount of the credit in excess of tax otherwise payable under the Nova Scotia Income Tax Act.

Deadline: Rolling deadline

Applicants must conduct qualified scientific research and experimental development (SR&ED) in Nova Scotia.

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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