Government of Nova Scotia, Canada
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Research and Development Tax Credit

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

R&D Tax Credit

Orange ClockFor More Information

Information on eligible expenditures and projects, claiming the credit, and appropriate forms can be obtained from the local Canada Revenue Agency (CRA) Taxation Centre:

Financial Review Manager
Scientific Research & Experimental Development,
Nova Scotia Tax Services Office, Canada Revenue Agency

Tel: 902-450-8795