Nova Scotia Research and Development Tax Credit

Overview of the Nova Scotia Research and Development Tax Credit program:

Link: https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/sred-claim.html This 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. The credit is administered by the 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.

Benefits of the Nova Scotia Research and Development Tax Credit program:

• This program offers a reduced tax rate of 15% on eligible scientific research and experimental development projects carried out in Nova Scotia.

Eligibility criteria of the Nova Scotia Research and Development Tax Credit program:

• 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
• Federal credit is claimed on form T661
• 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