Biggins Lacy Shapiro & Company, LLC

Nova Scotia Economic Development Incentive and Financing Programs

REBATES 

Innovation Rebate Program: The Innovation Rebate Program provides a rebate of up to 25% to help businesses invest in capital projects that support the development of products and value-added products. The project costs must be between $3 million and $15 million to qualify for this rebate.
 
Payroll Rebate Program: Nova Scotia’s payroll rebate is an earned incentive, paid out yearly after a company achieves pre-determined targets. The rebate is a return on a company’s eligible gross payroll. It is issued over a set number of years—usually between three and five—and to a set amount. This means that for every dollar a company spends in salaries and benefits, the company will be eligible for a rebate back on a negotiated percentage. The payroll rebate agreement includes performance targets that a company must achieve in order to receive the rebate, including number of new positions created and average annual salary.

TAX INCENTIVES 

Scientific Research and Experimental Development (SR&ED) Tax Incentive Program: Companies in Canada that invest in R&D can apply for the SR&ED tax incentives, irrespective of size, industry sector, or field of technology. The SR&ED tax credit and provincial tax credits for R&D are a distinct benefit in addition to corporate tax provisions allowing for full deduction of current R&D expenditures from business income.
 
The SR&ED tax incentive program provides tax incentives for the direct in-house costs of performing eligible R&D work in Canada. Eligible work includes experimental development, applied research, basic research, and certain types of work in support of the experimental development, applied research, and basic research. This support work includes: engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, and psychological research.
 
Nova Scotia Research & 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.
 
Nova Scotia Capital Investment Tax Credit (CITC): A refundable corporate income tax credit claimed by eligible corporations for capital equipment acquired for use in Nova Scotia. The capital equipment must be acquired as part of an "approved project", where $15 million or more is spent on “qualified property” over a period not exceeding 5 years and meets expenditure requirements. The rate of the tax credit is 15% of the capital cost of "qualified property" acquired in a taxation year, with a maximum tax credit of $30 million per "approved project."

DIRECT FINANCIAL ASSISTANCE

Strategic Innovation Fund: The Strategic Innovation Fund allocates repayable and non-repayable contributions to firms of all sizes across all of Canada's industrial and technology sectors. The program has a budget of $1.26 billion over five years.
 
Atlantic Innovation Fund: The AIF helps Atlantic Canadians develop and bring to market new products and services that lead to market success, help grow strategic sectors, or lead to the creation of research and commercialization partnerships. TRAINING PROGRAMS
 
Workplace Innovation and Productivity Skills Incentive (WIPSI): Workplace Innovation and Productivity Skills Incentive provides funding to companies to encourage investment in skills development and certification. It is also designed to help companies adapt to the introduction of new technology and innovative processes, improve productivity, and strengthen international competitiveness.
 
Co-op Education Incentive - The Co-op Education Incentive (CO-OP) provides wage assistance to private sector, government-funded, and non-profit organizations offering career-related work experiences for university and community college co-operative students. Employers pay students a minimum of $15.00 per hour plus 4% vacation pay. CO-OP will reimburse $7.50 per hour to a maximum of 40 hours per week. Employers participating in IRAP and SR&ED are eligible for an “R&D Incentive” and may receive up to $10.00 per hour.

OTHER PROGRAMS

Start-Up Visa Program: The Start-Up Visa Program is intended to attract foreign entrepreneurs who wish to establish new, high-growth businesses in Canada that will support innovation and job creation. 

Updated June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com