Tax Incentives
Numerous tax incentives are currently in place to help foster business growth in Nova Scotia. These include:

Harmonized Sales Tax (HST)
Nova Scotians pay one sales tax on many goods and services - 15%. The HST means the cost of new investment in equipment and buildings is significantly lower in Nova Scotia than in other provinces such as Ontario or British Columbia.

Small Business Deduction:
This deduction reduces the federal corporate income tax rate on eligible amounts of active business income earned in Canada from 28% to 12%. The amount of active business income eligible for the Small Business Rates in a year is $200,000.

Special Rate for Manufacturing and Processing Profits:
A special rate of corporate income tax on manufacturing and processing activities reduces the federal general rate on corporate profits from 28% to 22.12%. Provincial corporate tax rates ranging from 10% to 16% are levied in addition to the applicable federal rate.

Nova Scotia New Business:
As an incentive to formation of new business ventures, the provincial rate of tax is reduced to 0% for the first three fiscal periods on the first $200,000 of annual taxable income for eligible businesses.

Capital Cost Allowance:
The Capital Cost Allowance allows taxpayers to charge up to a 30% declining balance on manufacturing machinery and equipment.

Investment Tax Credits (ITC)
An investment tax credit of 10% of capital costs (less government assistance) is available for many projects for new manufacturing and processing equipment. This credit directly reduces federal income tax otherwise payable.

Film Job Training Initiative
This Nova Scotia Film Development Corporation program assists television & video projects in upgrading Cape Breton film crews level of expertise.

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For additional information on the Nova Scotia Business Incentives, please check the complete list found in the Business Route to Success - A Business Case for Investment.