
New Small Business Tax Deduction
grant_single|update January 24, 2025
NS, Canada
Tax credit for newly incorporated Nova Scotia businesses
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|closingDate May 17, 2024
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Nova Scotia
- Finance and Treasury Board (NB)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
This deduction eliminates the Nova Scotia corporate income tax for the first three taxation years of an eligible new small business after incorporation.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 15,000
Launching a community arts program for underprivileged youth
$ 35,000
Setting up a mobile farmers market to serve rural communities around Sydney
$ 40,000
Creating a coworking space for social enterprises
$ 50,000
Developing an app to connect freelance creatives with businesses
$ 30,000
Launching an eco-friendly clothing line using sustainable materials
grant_single_labels|admissibility
A business must meet the following criteria to be eligible for the New Small Business Tax Deduction:
- The business must qualify for the federal small business deduction for the applicable tax year.
- The business must have maintained a permanent establishment in Nova Scotia at any time during the tax year.
- The business must be a new Nova Scotia business.
- The business must have at least 2 employees, with at least 1 employee unrelated to any shareholder of the corporation.
- The business must not be in a partnership or joint venture with an ineligible corporation.
- The business must not be a beneficiary of a trust where any beneficiary is ineligible.
- The business must not be a previous active business with essentially the same owners or related owners.
- The business must not be a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor.
- The business must not carry on the same, or substantially the same, business activity it carried on as a sole proprietorship, partnership, or corporation.
grant_eligibility_criteria|who_can_apply
Eligible applicants must be new small businesses in Nova Scotia that qualify for the federal small business deduction, maintain a permanent establishment in the province, and are not involved in specified professional practices, partnerships, or previously active businesses with the same ownership.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies and industries based on their status and main activities. The outlined restrictions help ensure that the tax deduction is provided to strategic small business sectors in Nova Scotia.
- Businesses that are a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor.
- Corporations involved in partnerships or joint ventures with ineligible entities.
- Businesses that are beneficiaries of a trust where any beneficiary is ineligible.
- Companies that are essentially the same as previous active businesses with the same or related owners.
- Businesses carrying on the same, or substantially the same, business activity as a previous sole proprietorship, partnership, or corporation.
grant_eligibility_criteria|eligible_expenses
There are no specific projects or activities mentioned as eligible for this grant within the provided context. The grant focuses on eliminating provincial corporate income tax for certain qualifying new small businesses in Nova Scotia.
grant_eligibility_criteria|zone
This tax deduction is specifically available for businesses that are located in Nova Scotia, as dictated by the requirement of maintaining a permanent establishment in the province. The deduction aligns with localized economic strategies to support new business growth within the region.
- Companies located in Nova Scotia.
grant_single_labels|criteria
The evaluation and selection of projects for this grant do not have specified criteria or point scores outlined in the provided context.
grant_single_labels|apply
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grant_single_labels|otherInfo
This grant provides a corporate tax holiday for the first three years for eligible new small businesses, under specific conditions.
- You can apply for the grant at the end of each of your corporation's first 3 tax years or up to 3 years after your corporation's year end for the specified tax years.
- Applications will be processed sequentially, meaning you can't apply for the 2nd or 3rd year without submitting the previous years' applications.
- It takes about 5 weeks to process your application, but it can take longer if more information is needed or if forms are filled in incorrectly.
- Key documents needed include CRA Business Number, incorporation date, list of shareholders with their share percentages, and corporate income tax return including Schedule 341.
- The grant application must be submitted via email; paper applications are not accepted.
grant_single_labels|contact
Samantha.Thomson@novascotia.ca
902-424-5388
Apply to this program
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