Canada: Extension and expansion of capital investment tax credit (Nova Scotia)

Increased rate of capital investment tax credit for qualified property acquired after 1 October 2022

Nova Scotia

Legislation in Nova Scotia (Bill 227), which includes a measure to expand the capital investment tax credit, received Royal Assent on 9 November 2022.

Bill 227 increases the rate of the capital investment tax credit to 25% (from 15%) for qualified property acquired after 1 October 2022. The refundable tax credit applies to capital equipment acquired for use in Nova Scotia as part of certain approved capital projects.

The bill also extends the credit to 31 December 2029 (previously scheduled to expire on 31 December 2024). The credit is generally available to eligible corporations in manufacturing and processing, farming, fishing, logging, storing grain and harvesting peat sectors.

Read a November 2022 report prepared by the KPMG member firm in Canada


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