On March 26, 2019, Finance and Treasury Board Minister Karen Casey presented the 2019-2020 Nova Scotia budget. This year’s budget, which is titled “Building on a Strong Foundation,” focuses on improving access to healthcare, supporting the community, investing in education, and preparing youth for the workforce, as well as creating favourable conditions for economic growth. The government hopes to encourage domestic business growth by expanding existing tax credits for innovation and introducing a new one for venture capital.
No new taxes or tax increases have been introduced in this year’s budget, but a few interesting tax initiatives relating to new and small businesses were announced, as noted below.
Small Business Tax Initiatives
As a demonstration of its commitment to create a diverse and innovative economy, where new and small businesses can thrive, the government announced that it would double the Innovation Rebate Program and expand the existing Innovation Equity Tax Credit to include a 15% non-refundable corporate income tax credit, effective April 1, 2019.
A Venture Capital Tax Credit will also be introduced to encourage Nova Scotian businesses and individuals to invest in venture capital corporations that support new and growing businesses in the province.
In addition, an accelerated Capital Cost Allowance (CCA) tax incentive will be introduced to enhance business expansion and competitiveness.
Further information on Nova Scotia’s 2019-2020 budget may be found on the province's web site at: https://novascotia.ca/budget/
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.