Provincial Financing + Incentives
16042
page-template-default,page,page-id-16042,page-child,parent-pageid-15672,bridge-core-1.0.4,ajax_fade,page_not_loaded,,qode-theme-ver-18.0.8,qode-theme-bridge,disabled_footer_bottom,qode_header_in_grid,wpb-js-composer js-comp-ver-5.7,vc_responsive
 

Provincial Financing + Incentives

Investment Tax Credit (ITC): The ITC can provide an addition to the 10% Federal tax credit. Corporations making qualified capital investments in Nova Scotia are eligible for an additional 5% investment tax credit.

 

Scientific Research and Experimental Development (SR&ED):  Under the SR&ED corporations, in addition to the 20% Federal tax credit, can earn an additional SR&ED of 15% of qualified expenditures for SR&ED carried out in Nova Scotia.

 

Payroll Rebate:  Nova Scotia Business Inc’s payroll rebate is a performance-based incentive offered to eligible companies expanding in or locating to Nova Scotia. The rebate is a return (usually between 5%-10%) on your eligible gross payroll and is generally paid out annually over a term not exceeding five years.

 

Industrial Expansion Fund: The Industrial Expansion Fund is the most flexible financial assistance tool available to the provincial government. Assistance can be non-repayable.

 

Research and Development Tax Credit: The R&D 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. The credit is administered by Canada Revenue Agency (CRA) and is claimed in conjunction with with Federal SR&ED tax credits. A 15% rate is applied to all corporations that incur SR&ED expenditures in Nova Scotia, regardless of size.

 

Nova Scotia Energy Tax Credit: The Nova Scotia Tax Credit is a non-refundable tax credit equal to 25% of eligible capital investments in Nova Scotia on renewable energy sources or energy efficient investments made by a corporation in a given year. The credit can be used to reduce up to a maximum of 50% of the Nova Scotia tax on large corporations payable in a tax year. Any unused credit can be carried forward seven tax years.

 

Community Feed-in Tariff (COMFIT) Program: The Nova Scotia Community Feed-in Tariff (COMFIT) Program encourages community-based, local renewable energy projects by guaranteeing a rate per kilowatt-hour for the energy the project feeds into the province’s distribution electrical grid.

 

Nova Scotia First Fund: The R&D 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. The credit is administered by Canada Revenue Agency (CRA) and is claimed in conjunction with with Federal SR&ED tax credits. A 15% rate is applied to all corporations that incur SR&ED expenditures in Nova Scotia, regardless of size.

 

Clean Technology Fund: Innovacorp venture capital invests in early stage, clean technology companies in Nova Scotia that have a high growth potential and attractive risk-return prospects. Investments range from $100,000 to $3 million over the lifecycle of the investment.

 

Digital Media Tax Credit: The Digital Media Tax Credit is a refundable tax credit for costs directly related to the development of interactive digital media products in Nova Scotia. As of January 1, 2008 the credit rates were increased. Tax credit amounts will now be equal to the lesser of:

 

  • 50 percent of eligible Nova Scotia labour expenditures; or
  • 25 percent of total expenditures made in Nova Scotia
  • A 10 percent geographic area bonus on labour expenditures (5 percent bonus on total expenditures) is available for products developed outside the Halifax Regional Municipality.

 

Film Tax Credit: The Film Tax Credit is a refundable tax credit for costs directly related to the production of films in Nova Scotia. As of September 1, 2007 the credit rates are increased. Tax credit amounts will now be equal to the lesser of:

 

  • 25 percent of total expenditures
  • 50 percent of eligible Nova Scotia labour expenditures; or
  • A 10 percent geographic area bonus on labour expenditures (5 percent bonus on total expenditures) is available for films shot outside of the Halifax Regional Municipality. As well, a 5 percent frequent filming bonus is available to companies who have produced 3 films in a 24 month period.

 

Nova Scotia Co-operative Council: The Nova Scotia Co-operative Council offers the small business loan guarantee program and the immigrant small business loan program.

 

Innovacorp:  Innovacorp has more than $60 million in capital commitments available for high growth technology companies from its Nova Scotia First and Clean Technology funds.

 

For a list of additional information on Nova Scotia incentives please visit the Nova Scotia Department of Finance website.

 

Community Business Development Corporation Financing

 

Depending upon the location of the business development or expansion, companies seeking financing and business counseling can choose from one of three local Community Business Development Corporations (CBDCs) located on Cape Breton Island. The CBDCs are:

 

 

Programs delivered at the island’s CBDCs include, the Self-Employment Benefit Program, Loans, and the Youth Loan Program.

Due to the effects of COVID-19, the Cape Breton Partnership has put together a list of helpful resources.

Find more information here.
+ +