Nova Scotia Research and Development Tax Credit

Q: How much funding can be received?

Nova Scotia Research and Development Tax Credit Funds up to 15% of admissible expenses.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Nova Scotia Research and Development Tax Credit a grant, loan, or tax credit?

Nova Scotia Research and Development Tax Credit is a Tax Credits

Q: Who are the financial supporters of the Nova Scotia Research and Development Tax Credit?

Nova Scotia Research and Development Tax Credit is funded by Government of Nova Scotia, Finance and Treasury Board (NB)

Q: Who is eligible for the Nova Scotia Research and Development Tax Credit program?

To be eligible for the Nova Scotia Research and Development Tax Credit program, you must: • The applicant must be a corporation, a corporation that is a beneficiary of a trust, or a corporation that is a member of a partnership. • The corporation must have a permanent establishment in Nova Scotia. • The scientific research must be conducted in Nova Scotia.

Q: Who can I contact for more information about the Nova Scotia Research and Development Tax Credit?

You can contact Government of Nova Scotia.

Q: Where is the Nova Scotia Research and Development Tax Credit available?

The Nova Scotia Research and Development Tax Credit program is available the province of NS.

Last Update: July 22, 2025

NS, Canada

Tax credit for R&D in Nova Scotia

At a glance

Eligible Funding

Up to 15% of project cost

Timeline

Closing date : May 17, 2024

Financing Type

Tax Credits

Eligible Industries

Professional, scientific and technical services

Funds Providers

Finance and Treasury Board (NB)

Government of Nova Scotia

Program status

Closed

Overview

Tax credit of 15% for qualified scientific research and experimental development expenditures in Nova Scotia.

Financing terms and conditions

The Nova Scotia Research and Development Tax Credit provides a fully refundable financing opportunity for corporations engaged in eligible scientific research activities within the province. This tax credit is designed to support and incentivize R&D investment without carryback or carryforward provisions.

The credit is fully refundable at a rate of 15% of eligible expenditures.
Eligible expenditures are reduced by any received government and non-government assistance, however, the credit itself does not affect the Nova Scotia tax otherwise payable.
Recapture provisions apply, which may increase Nova Scotia tax liabilities if applicable.

Activities funded

Scientific research activities conducted in Nova Scotia.
Experimental development projects meeting SR&ED criteria.
Initiatives that involve systematic investigation or search by experiment or analysis.

Examples of admissible projects:

$ 37,500

Applying machine learning for predictive analytics in healthcare to improve patient outcomes and efficiencies

$ 26,250

Creating an AI-driven platform to enhance crop yield prediction and management for local farmers

$ 22,500

Conducting basic research on marine biodiversity to advance scientific knowledge about ocean ecosystems

$ 30,000

Developing an energy-efficient solar panel prototype to advance renewable energy technologies

$ 45,000

Developing a modular water purification system using advanced nanotechnology to improve sustainability

$ 33,000

Developing a wearable health-monitoring device with real-time data analytics for personalized health insights

Eligibility

Eligibility for this grant is determined by specific requirements related to the corporation’s setup and location.

The applicant must be a corporation, a corporation that is a beneficiary of a trust, or a corporation that is a member of a partnership.
The corporation must have a permanent establishment in Nova Scotia.
The scientific research must be carried out within the province of Nova Scotia.

Who is eligible?

Corporations, corporations that are beneficiaries of a trust, and corporations that are members of a partnership, with a permanent establishment in Nova Scotia, for scientific research carried out in this province.

Eligible expenses

The Nova Scotia R&D tax credit facilitates investments in scientific research and experimental development within the province. Eligible projects typically involve innovation and technological advancements harnessing scientific methodologies.

Scientific research leading to new or improved products, processes, or technologies.
Experimental development to address technical challenges and achieve technical advancement.
Projects that align with the criteria set for SR&ED investment tax credit at a federal level.

Eligible geographic areas

This grant is available to companies with a permanent establishment in Nova Scotia. This geographical restriction ensures that scientific research is conducted within the province.

Permanent establishment in Nova Scotia.

How to apply

Determine Eligibility

Confirm that your corporation has a permanent establishment in Nova Scotia.
Ensure your expenditures qualify for the federal SR&ED investment tax credit.

Prepare Required Documentation

Compile records of eligible R&D expenditures.
Ensure you have documentation to support the scientific research conducted.
Review Section 41 of the Income Tax Act (Nova Scotia) for specific legislative requirements.

Complete Form T2SCH340

Download and complete the T2SCH340 form, Nova Scotia Research and Development Tax Credit.
Provide accurate details of R&D activities and expenditures on the form.

Submission with Corporate Tax Return

Attach the completed T2SCH340 to the corporation’s income tax return (T2) filing.
File the tax return with the Canada Revenue Agency within 18 months of your corporation's tax year-end.

Retain Documentation

Keep copies of all submitted forms and supporting documents for your records.
Be prepared for any follow-up or audit requests from the CRA regarding claimed expenditures.

Additional information

The Nova Scotia R&D tax credit is designed to support corporations in Nova Scotia with eligible scientific research and development expenditures. The tax credit follows specific eligibility criteria and deadlines for filing, with implications on federal deductions.

Administered by the Canada Revenue Agency
Fully refundable at a rate of 15% of eligible expenditures
Available to corporations, including those that are beneficiaries of a trust or members of a partnership with a permanent establishment in Nova Scotia
Eligible expenditures need to qualify for federal SR&ED investment tax credit
Filing deadline: 18 months after the corporation's tax year-end
Carryback/carryforward: Not applicable
Eligible expenditures are reduced by other forms of government and non-government assistance
The credit reduces the federal pool of deductible SR&ED expenditures and qualified SR&ED expenditures
Recapture of the credit will increase Nova Scotia tax otherwise payable
Ability to renounce: On or before six months after the corporation's tax year-end
Filing form: T2SCH340, Nova Scotia Research and Development Tax Credit
Legislation: Section 41 of the Income Tax Act (Nova Scotia)
Provincial website: Nova Scotia – Research and Development Tax Credit

Apply to this program

Frequently Asked Questions about the Nova Scotia Research and Development Tax Credit Program

Here are answers to the most common questions about the Nova Scotia Research and Development Tax Credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Nova Scotia Research and Development Tax Credit?

How much funding can be received?

What expenses are eligible under Nova Scotia Research and Development Tax Credit?

The eligible projects for the Nova Scotia Research and Development Tax Credit focus on advancing scientific research and development. These activities must align with the criteria for the federal scientific research and experimental development (SR&ED) investment tax credit. Scientific research activities conducted in Nova Scotia. Experimental development projects meeting SR&ED criteria. Initiatives that involve systematic investigation or search by experiment or analysis.