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 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.
EligibilityThis 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
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:
- Corporations that incur qualified SR&ED expenditures will be eligible for a refund of the tax credit where the tax credit exceeds Nova Scotia tax payable
- The refund amount is equal to the amount of the credit in excess of tax otherwise payable under the Nova Scotia Income Tax Act