Nova Scotia’s Bill 227, which includes a measure to expand the Capital Investment Tax Credit, received Royal Assent on November 9, 2022. The bill received first reading on October 21, 2022.

The measures in Bill 227 are considered enacted for U.S. GAAP purposes as of November 9, 2022 (the date the bill received Royal Assent). These changes were considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on October 21, 2022, the date the bill received first reading (as Nova Scotia has a majority government).

Bill 227 increases the rate of the Capital Investment Tax Credit to 25% (from 15%) for qualified property acquired after October 1, 2022. This refundable tax credit applies to capital equipment acquired for use in Nova Scotia as part of certain approved capital projects. The bill also extends this credit to December 31, 2029 (previously scheduled to expire on December 31, 2024). This tax credit is generally available to eligible corporations in manufacturing and processing, farming, fishing, logging, storing grain and harvesting peat sectors.

Other measures

The bill also includes changes to align Nova Scotia’s fertility and surrogacy rebate with new federal definitions, effective for the 2022 and subsequent taxation years. The province previously announced these rebates in its 2022 budget.

For more information, contact your KPMG adviser.

Information is current to November 14, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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