What is the Innovation Equity Tax Credit (NS)?

by TurboTax• Updated 1 month ago

The Innovation Equity Tax Credit (Innovation ETC) , is a non-refundable personal income tax credit available to eligible investors investing in an approved corporation within Nova Scotia.

This credit is meant to encourage investments in eligible small and medium corporations that are engaged in innovative activities which contribute to inclusive economic growth, such as research, development, or commercialization of new technology, products, or processes.

The Innovation ETC is equal to 35% of eligible investments, which increases to 45% for investments made in eligible classifications within the oceans technology and life sciences sectors. The maximum annual investment amount is $250,000.

To claim this amount in TurboTax Online

Answer the initial Personal info and Tax profile interview questions if you haven't already. This unlocks 2024 tax return.
From 2024 tax return, select Provincial > Provincial Tax Credit Profile (NS).
At the Nova Scotia Tax Credits section, select Nova Scotia Innovation Equity Tax Credit, then continue.
At Nova Scotia Innovation Equity Tax Credit, enter the investment amounts from your certificate(s), then continue.
At Here's your Nova Scotia tax and credit summary, you can confirm that your amounts are accurate.

To claim this amount in TurboTax Desktop

Go to the Provincial section of your tax return in TurboTax.
Under the Which credits will you claim? section, select Nova Scotia Innovation Equity Tax Credit, then Continue.
Enter the investment amounts from your certificates, then continue.
Continue to Nova Scotia tax and credit summary, where you can confirm your amounts are accurate.

Note: These forms are only available in English.