Atlantic Canada Business Grants

Finance and Treasury Board (Department)

Research and Development Tax Credit

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Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The New Brunswick R&D tax credit is administered by the Canada Revenue Agency and is fully refundable at the rate of 15% on eligible expenditures incurred after December 31, 2002. It is available to corporations, corporations that are beneficiaries of a trust, and corporations that are members of a partnership, with a permanent establishment in New Brunswick, for scientific research and experimental development (SR&ED) carried out in this province. 

Comments on Funding:

The tax credit is 15% of eligible expenditures.
The New Brunswick R&D tax credit will reduce the federal pool of deductible SR&ED expenditures and qualified SR&ED expenditures.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

Applicants must:

  • be corporations, corporations that are beneficiaries of a trust, and corporations that are members of a partnership,
  • have a permanent establishment in New Brunswick,
  • carry out scientific research and experimental development (SR&ED) in New Brunswick.

Application Steps: 

No specific steps have been identified.

Documentation Needed: 

To claim this tax credit, applicants must complete T2SCH360, New Brunswick Research and Development Tax Credit.

Other Things to Note:

No other details available.

Program Contact:

Tax Credits - Research and Development Tax Credit

Research and development (R&D) tax credit - Canada.ca

Small Business Investor Tax Credit Program

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Amount:

$125,000

Type of Program:

Tax Credit

Description:

The New Brunswick Small Business Investor Tax Credit provides a 50% (for investments made after April 1, 2015) non-refundable personal income tax credit of up to $125,000 per year (for investments of up to $250,000 per individual investor) to eligible individual investors who invest in eligible small businesses and/or community economic development corporations (CEDC) or associations (co-op) in the province.

It also enables New Brunswick corporations and trusts to be eligible for a 15% non-refundable corporate income tax credit on eligible investments in small businesses in the province up to $500,000.  

Comments on Funding:

Funding is a 50% non-refundable personal income tax credit of up to $125,000 per year per individual investor.
The tax credit for a corporation and trust investor is 15% of the investment up to the maximum annual tax credit per corporation and/or trust investor of $75,000.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant can be a corporation, or an individual investor.

The applicant must be a corporation that:

  • is a private company,
  • is incorporated or registered to carry on business in New Brunswick,
  • has authorized capital consisting of shares without par value,
  • has net tangible assets less than $40 million (including associated corporations),
  • uses all, or substantially all, of its assets and income to generate active business income in New Brunswick,
  • pays, in each of the four years after the date of registration, at least 75% of its wages and salaries to individuals who are residents of New Brunswick unless the corporation exports outside of N.B. more than 50% of their goods and services, then, the requirement is for 50% of its wages and salaries to individuals who are resident of New Brunswick,
  • is not lending money, providing a loan guarantee or any other financial assistance, to a person for the purchase of shares included in a specified issue under the Small Business Investor Tax Credit Program,
  • will issue new shares, fully paid shares of the capital stock of a corporation that is registered under the Small Business Investor Tax Credit Act and will not include a replacement share. The issued shares will not be purchased by investors who have disposed of shares of the corporation after Dec. 10, 2002, and before the proposed share issuance.

The applicant must be an individual investor that:

  • is 19 years of age or older,
  • is a New Brunswick resident.

The total investment by an individual investor shall be not less than $1,000, and by a corporation and trust investor not less than $50,000.

Application Steps:

The applicant must complete a two-stage process:

1

application for a Certificate of Registration. A fee of $100 applies to each application for registration under the program. The Department of Finance will issue a Certificate of Registration.

2

application for a Tax Credit Certificate. A fee of $25 applies to each investor tax credit certificate requested. The Department of Finance will issue a Tax Credit Certificate to eligible investors on approved purchases of shares.

Documentation Needed: 

Corporation applicants must submit:

  • an investment plan,
  • the income tax return from the previous taxation year (including those of associated corporations),
  • a copy of the most recent financial statements of the corporation (including those of associated corporations) which have been reviewed by a person who is a licensed or registered member of an accounting association regulated by the Province or proforma financial statements for any start up corporation,
  • a copy of the corporate share registry and share transfer registry certified by an officer of the company,
  • a copy of the instrument of incorporation certified by an officer of the company,
  • a statement signed by each investor certifying that he or she understands the holding requirements for the shares and has read the investment plan,
  • a separate declaration stipulating that the eligible investor is in compliance with Small Business Investor Tax Credit Act Section 14.1(2) for each corporation and trust investor,
  • a certificate signed by the directors of the corporation to certify that the information contained in the application is complete and accurate.

Other Things to Note:

Tax credit for business shareholders/investors.

Program Contact:

Small Business Investor Tax Credit Program

New Brunswick Dividend Tax Credit

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Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The New Brunswick Dividend Tax Credit is a non-refundable personal income tax credit. 

Comments on Funding:

The tax credit offers two rates:  

  1. 1
    14% for eligible dividends, as defined by the federal government, paid from corporate income taxed at the general corporate income tax rate;
  2. 2
    2.75% for dividends paid from income taxed at the small business rate.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

Applicants must have received dividends:

  • paid from corporate income taxed at the general corporate income tax rate;
  • paid from income taxed at the small business rate.

Application Steps:

No specific steps have been identified.

Documentation Needed: 

No specific documentation has been identified.

Other Things to Note:

Tax credit for business shareholders. 

Program Contact:

The New Brunswick Dividend Tax Credit