Investors in oceans technology, life sciences, to receive tax incentive of 45 per cent
Nova Scotia has launched a new tax credit aimed at spurring more investment in startup companies and small and medium-sized businesses.
Effective immediately, the innovation equity tax credit will apply to investments of up to $250,000 in eligible businesses, which is $200,000 more than the current equity tax credit.
Investors are to receive a tax incentive of 35 per cent, or 45 per cent in the priority sectors of oceans technology and life sciences.
The Finance Department said the revised regulations outline that Nova Scotia businesses less than 10 years old may qualify for funding.
It said the government is also considering options to expand the tax credit through legislation this spring that would include making corporations and qualified venture capital funds eligible for the credit.
The current equity tax credit will be phased out as part of the 2019-20 budget, to allow time for businesses to adjust.
In a news release, Finance Minister Karen Casey said the goal is to encourage investment that can drive growth and help competitiveness.
“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,” said Casey.
