New Brunswick Tax Credits

Provincial R&D Tax Credits

The New Brunswick Research and Development tax credit is 15% and is fully refundable. This tax credit will be applied to Scientific Research and Experimental Development expenditures as defined by the Federal Income Tax Act.

Provincial Sales Tax Rebate

New Brunswick has combined its provincial sales tax rate with the federal sales tax rate, resulting in the new HST (harmonized sales tax). The entire 13% sales tax (or value-added tax VAT) on business inputs and purchases is a refundable tax credit for most businesses in New Brunswick.

Heritage Tax Abatement Program

Heritage Properties can qualify for incentives to restore and re-use designated historic places.

Federal Investment Tax Credit

This credit is 10% of net investment in equipment and buildings in manufacturing, processing, mining, oil and gas, logging, farming, and fishing. This credit applies only in the Atlantic Provinces and Quebec’s Gaspé region.

Scientific Research and Experimental Development Program (SR&ED)

The SR&ED program is a federal tax incentive program for research and development in Canada that will lead to new, improved or technologically advanced products or processes. A Canadian-controlled private corporation can earn refundable investment tax credits of 35% up to the first $2 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount.

Duty Drawbacks and Deferral Program

The Duty Drawbacks and Deferral Program helps Canadian companies compete in export markets by allowing them, under special circumstances, to recover duties they paid on imported goods.

Foreign Tax Credit

Corporations which have foreign source income and are resident in Canada at any time in the year are eligible for a credit on foreign taxes paid.

About New Brunswick