Innovation Equity Tax Credit
The Innovation Equity Tax Credit is a non-refundable personal and corporate income tax credit available to eligible investors who invest in approved corporations.
The Innovation Equity Tax Credit encourages investors to make equity capital investments in eligible Nova Scotia small and medium corporations engaged in innovative activities contributing to inclusive economic growth and increase investment in innovation.
The investments incented by this program are meant to provide the capital required for research, development or commercialization of new technology, new products or new processes.
Tax credit amount
The credit for an individual investor is equal to 35% of an eligible investment made in an approved corporation. The credit for an individual investor increases to 45% when investment is made in an approved corporation within the oceans technology and life sciences sectors. The maximum annual investment amount for an individual is $250,000.
The credit for a corporate investor is equal to 15% of an eligible investment made in an approved corporation. The maximum annual investment amount for a corporation is $500,000.
Application for a Certificate of Registration
Corporations need to apply for a Certificate of Registration before accepting investments from eligible investors. The certificate makes the specified shares eligible for the tax credit.
- Application Form (PDF)
- Proposed Investor Form (Individuals) (PDF)
- Proposed Investor Form (Corporations) (PDF)
Application for Tax Credit Certificates
After a specified issue is complete, approved corporations must apply for tax credit certificates on behalf of all eligible investors who made eligible investments during the time the corporation was registered under the program. The application for tax credit certificates must be received by the Department of Finance and Treasury Board within 6 months of the expiry date on the corporation's Certificate of Registration.
- Application Form (PDF)
- Eligible Investor Signed Statement (Individuals) (PDF)
- Eligible Investor Signed Statement (Corporations) (PDF)
- Investor Data Report (XLSX)
Before you start
Make sure you review detailed criteria in the Innovation Equity Tax Credit Guidelines (PDF).
Annual returns
Approved corporations, which have completed a specified issue, must submit an annual return within 6 months of the approved corporation's tax year end for each of the 4 years after the expiry date on its Certificate of Registration.