Nova Scotia startup companies and small and medium-sized businesses will benefit from more investment, thanks to a new Innovation Equity Tax Credit launched today by Finance and Treasury Board Minister Karen Casey.
The new tax credit applies to investments up to $250,000 in eligible businesses, which is $200,000 more than the current Equity Tax Credit. Nova Scotian investors will receive a tax incentive of 35 per cent, or 45 per cent in priority sectors of oceans technology and life sciences.
“This new tax credit encourages Nova Scotians to invest in our home-grown entrepreneurs and local companies so they can drive growth, be more competitive and succeed,” said Ms. Casey. “It will add to our ongoing efforts to improve the business climate in Nova Scotia for innovation-driven entrepreneurship by doing things differently to support economic growth.”
The revised regulations outline that Nova Scotia businesses less than 10 years old may qualify for funding. Investors often bring expertise, advice, mentoring and networks to the businesses they have invested in.
The province is also exploring options to expand the tax credit through legislation this spring. Those options include making corporations and qualified venture capital funds eligible for the credit.
The new tax credit focuses on innovation-driven entrepreneurship and narrows business eligibility to priority areas. The current equity tax credit, established in 1994, will be phased out as part of the 2019-20 Budget, to enable time for businesses to adjust.
The new tax credit is effective immediately. To view the regulations visit, https://novascotia.ca/just/regulations/rxaa-l.htm#inctax .
FOR BROADCAST USE:
Nova Scotia startups will benefit from a new Innovation Equity Tax Credit that encourages more local investment.
The new tax credit focuses on innovation-driven entrepreneurship and narrows business eligibility to priority areas, including ocean technology and life sciences.
Finance and Treasury Board Minister Karen Casey says new investments in local companies will help to create a stronger Nova Scotia.
This will help build on the flourishing startup community we have in the province.
The new tax credit is effective immediately.
Media Contact:
- Gary Andrea
- 902-456-6196 Email: gary.andrea@novascotia.ca
