New Brunswick Research and Development Tax Credit
NB, Canada
Tax credit for R&D in New Brunswick
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|grantStatusClosed
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Professional, scientific and technical services
grant_single|grantors
- Finance and Treasury Board (NB)
- Government of New Brunswick
grant_single|status
grant_card_status|closed
grant_single_labels|preview
Refundable tax credit of 15% for qualified scientific research and experimental development expenditures in New Brunswick.
grant_single_labels|projects
Eligible projects for the Research and Development Tax Credit in New Brunswick focus on advancements in scientific knowledge and technological innovations. These initiatives encompass experimental developments, applied research, basic research, and essential support work related to SR&ED.
- Projects involving experimental development to achieve technological advancements.
- Applied research projects aiming for scientific knowledge with practical applications.
- Basic research initiatives undertaken to advance scientific understanding without defined practical outcomes.
- Support work including engineering, design, and operations research that complements SR&ED activities.
- Mathematical analysis, computer programming, and data collection as supportive work for eligible SR&ED projects.
- Testing and psychological research that directly supports other SR&ED activities.
grant_single|admissibleProjectsExample
$30,000
Innovative agricultural technology for indoor vertical farming
$30,000
Innovation in wearable health monitoring devices for elderly care
$45,000
Development of a new AI-based predictive maintenance tool for manufacturing industries
$45,000
Commercialization of a new eco-friendly water purification technology
$45,000
Development of a new software platform for financial risk management
$31,500
Research on the development of biodegradable packaging materials from agricultural waste
grant_single_labels|admissibility
Eligibility for this tax credit is determined by specific criteria related to the corporation's activities and expenditures in research and development.
- The applicant must be a New Brunswick corporation.
- The corporation's activities must include experimental development aimed at achieving technological advancement.
- The corporation may engage in applied research to advance scientific knowledge with practical applications.
- The corporation can conduct basic research to advance scientific knowledge without a specific application.
- Support work such as engineering, design, operations research, and other specified activities must directly support eligible SR&ED projects.
- Eligible expenditures must be current and capital SR&ED expenditures, including wages and salaries, materials, equipment, and overhead costs incurred due to SR&ED initiatives.
grant_eligibility_criteria|who_can_apply
New Brunswick corporations undertaking Scientific Research and Experimental Development (SR&ED) are eligible to apply for this tax credit. Eligible expenditures must be related to experimental development, applied research, basic research, or support work that directly assists these activities. Both current and capital SR&ED expenditures, such as wages, materials, and overhead, are considered for this credit.
grant_eligibility_criteria|who_cannot_apply
Some types of companies may not be eligible for this grant. The eligibility criteria may exclude:
- Companies engaged in activities not aligned with the grant's objectives
- Companies with unresolved legal issues or non-compliance with regulations
grant_eligibility_criteria|eligible_expenses
The tax credit covers specific eligible expenditures related to SR&ED activities as defined by the Federal Income Tax Act.
- Experimental development expenditures.
- Applied research expenditures.
- Basic research expenditures.
- Support work expenditures including engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, and psychological research.
- Wages and salaries related to SR&ED initiatives.
- Materials used in SR&ED activities.
- Equipment used for SR&ED purposes.
- Overhead costs associated with SR&ED projects.
- Other expenditures incurred as a result of SR&ED initiatives.
grant_eligibility_criteria|zone
Businesses seeking to apply for this R&D tax credit must be located within specific geographical areas governed by the funding body. The eligibility is restricted to companies operating within New Brunswick as per the specified criteria outlined.
- Corporations domiciled in the province of New Brunswick, Canada.
grant_single_labels|criteria
The evaluation and selection of projects for this grant are based on specific criteria with allocated point scores to ensure alignment with the grant’s objectives.
- Innovation and originality of the project proposal may influence its score.
- Feasibility and clarity of the implementation plan are critical for assessment.
- Alignment with the government’s or grant’s strategic goals is evaluated.
- Potential impact on the targeted community or sector is assessed.
- Cost-effectiveness and efficient use of resources are considered.
grant_single_labels|register
- Step 1: Determine Eligibility
- Review the eligibility criteria for SR&ED expenditures, such as experimental development, applied research, basic research, and support work.
- Ensure the corporation operates within New Brunswick and incurs eligible SR&ED expenditures.
- Step 2: Prepare SR&ED Documentation
- Compile detailed records of all eligible SR&ED activities, including descriptions of projects and technological advancements.
- Gather financial records of eligible expenditures, such as wages, materials, and overhead costs.
- Step 3: Complete T661 Form
- Download and fill out the T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim form.
- Ensure all sections of the form are accurately completed, including project descriptions and claimed amounts.
- Step 4: File the Income Tax Return
- Incorporate the completed T661 form in your corporation’s income tax return.
- Submit the tax return to the Canada Revenue Agency, ensuring inclusion of all required attachments.
- Step 5: Await CRA Review
- After submission, the CRA will review your SR&ED claim for compliance and accuracy.
- Prepare to provide additional documentation if requested by the CRA during the review process.
- Step 6: Receive Tax Credit
- Once approved, the CRA will issue the refundable R&D tax credit to the corporation.
- Retain documentation of the credit for future reference and auditing purposes.
grant_single_labels|otherInfo
Here are additional relevant details for the Research and Development Tax Credit in New Brunswick:
- The tax credit is fully refundable, meaning it can result in a refund if the credit amount exceeds the corporation's total tax payable.
- Expenditures eligible for the SR&ED tax credit must be consistent with those defined under the Federal Income Tax Act.
- Companies can contact the Canada Revenue Agency (CRA) for assistance and detailed guidelines on the application process.
grant_single_labels|contact
1-800-959-5525
Apply to this program
Unlock Funding for Scientific Innovation in New Brunswick
New Brunswick corporations can access a fully refundable Research and Development Tax Credit, designed to subsidize their scientific research and experimental development activities. This credit makes it financially feasible for businesses to fund transformative research projects, offering relief for eligible expenses ranging from wages to sophisticated laboratory equipment.
Understanding the Research and Development Tax Credit
The Research and Development Tax Credit for New Brunswick corporations is a crucial financial resource to foster innovation and technological advancements within the province. By offering a fully refundable tax credit, this program supports corporations undertaking scientific research and experimental development (SR&ED), thereby reducing the financial burden associated with these activities. The tax credit applies directly to eligible SR&ED expenditures, which include wages, salaries, materials, equipment, overhead costs, and other relevant expenditures incurred during research initiatives.
The credit is designed based on the definitions and guidelines specified under the Federal Income Tax Act and administered by the Canada Revenue Agency (CRA). This alignment ensures a cohesive national approach to stimulating economic growth through innovation. Eligible activities under this tax credit encompass a broad spectrum of research endeavors. From experimental development aimed at achieving technological breakthroughs to applied and basic research dedicated to expanding scientific knowledge, the credit serves as a versatile tool for diverse research applications.
Moreover, support work that directly aligns with the goals of these research activities also qualifies, covering critical functions such as engineering, design, operations research, and others. This comprehensive coverage ensures that corporations can pursue substantial research projects without having to compromise on the scope due to financial constraints.
The impact of this tax credit extends beyond just providing immediate fiscal relief. It incentivizes businesses to invest more heavily in research and development, promoting local innovation and enhancing competitiveness not only within Canada but also on the global stage. With the support from this credit, New Brunswick can continue to build a reputation as a hub for cutting-edge research, attracting talent and investment from across the world.
This tax credit is an important component of the provincial strategy to drive economic growth through innovation. By reducing the cost of research projects, it encourages businesses to take on ambitious projects that hold the potential to lead to new discoveries and technological advancements. This, in turn, contributes to a thriving research environment that benefits both the local community and the broader scientific community.
Corporations interested in leveraging this tax credit should ensure they clearly document their research activities and associated expenditures to meet the CRA’s compliance requirements. This diligent documentation is critical not only for securing the refundable credit but also for building a solid foundation for future funding opportunities.
Ultimately, the Research and Development Tax Credit for New Brunswick serves as a catalyst for innovation, enabling the province's businesses to take bold steps in research and development. It positions New Brunswick as a leader in fostering scientific growth and showcases the province’s dedication to advancing technology and scientific discovery. For corporations committed to pioneering new technologies or refining existing processes, this credit offers a timely and impactful financial lifeline.
