Newfoundland and Labrador research and development tax credit

• Completed Schedule 301
• T2 Corporation Income Tax Return
• Schedule 5, Tax Calculation Supplementary – Corporations

Who is eligible?

• Corporations with a permanent establishment in Newfoundland and Labrador that incur eligible research and development expenditures in the province

Who is not eligible

• Corporations exempt from tax under section 149 of the federal Income Tax Act

Eligible expenses

• Eligible research and development expenditures in Newfoundland and Labrador
• Scientific research and experimental development expenditures carried out in the province

Ineligible Costs and Activities

• Contract payments received after December 31, 2003
• GST/HST input tax credits claimed after December 31, 2003

Eligible geographic areas

• Newfoundland and Labrador

• Complete Schedule 301 with the eligible expenditures for the year.
• Attach the completed schedule to the T2 Corporation Income Tax Return.
• Report the credit amount on line 520 of Schedule 5, Tax Calculation Supplementary – Corporations.
• File the schedule within 12 months after the T2 filing due date.

• The credit is fully refundable but must first be applied to offset total taxes payable before a refund is issued.
• The claim requires submission of a completed Schedule 301 with your corporate tax return.
• Schedule 301 must be filed no later than 12 months after your corporation's filing due date.
• The amount of credit earned must be reported on line 520 of Schedule 5, Tax Calculation Supplementary – Corporations.