Business investment in innovation creates jobs, grows exports and drives the provincial economy. That is why new regulations are being released to support increased investment in innovation and economic growth.
The new Innovation Equity Tax Credit regulations make the tax credit available to eligible corporate investors. The tax credit has been available to individual investors since January 2019. “Government is committed to creating the right conditions for the private sector to thrive,” said Finance and Treasury Board Minister Karen Casey. “Since its launch, the Innovation Equity Tax Credit has encouraged greater investment in our province’s businesses, including oceans technology and life sciences sectors. I am pleased to expand the opportunity to corporate investors”
Corporate investments as of April 1, 2019 are eligible to receive the credit.
- the tax credit rate for eligible corporate investors will be set at 15 per cent on a maximum annual investment of $500,000, for a maximum annual credit of $75,000
- the corporation that the investors are investing in must be registered under the Innovation Equity Tax Credit program at the time of the investment
- corporate investors must have their head office located in Nova Scotia to be eligible
- Budget 2019-20 estimated the cost of the Innovation Equity Tax Credit to be $10 million for individual investors and $2 million for corporate investors
The regulations are available on the Registry of Regulations website at https://novascotia.ca/just/regulations/regs/2020-021-INC-Innovation_Equity_Tax_Credit.pdf