Legislation Encourages Productivity Investments, Supports Fertility and Surrogacy Options

Finance and Treasury Board Minister Allan MacMaster introduced the Financial Measures (Fall 2022) Act today, October 21.

Amendments in the act will expand a tax credit that encourages companies to invest in equipment that improves productivity, as well as align Nova Scotia’s fertility and surrogacy support with new federal definitions.

“We are committed to working on solutions that drive economic growth and support businesses to grow and prosper. By increasing the Capital Investment Tax Credit, we are encouraging businesses to expand and invest in our province,” said Finance and Treasury Board Minister Allan MacMaster. “This legislation also aligns our province’s fertility and surrogacy supports with a broadened definition of medical expenses proposed by the federal government.”

Nova Scotia’s Capital Investment Tax Credit rate will be increased from 15 to 25 per cent and the cap from $30 million to $100 million for all applicants.

The refundable corporate income tax credit provides credit for capital costs of new equipment used primarily in manufacturing or processing goods for sale or lease, farming or fishing, logging, storing grain or harvesting peat. It was established in 2015 and is closely aligned with the federal Atlantic Investment Tax Credit.

Changes to the Capital Investment Tax Credit will be effective as of October 1, 2022, and also include applicants who have already applied. The legislation would also extend the sunset date of the tax credit by five years to December 31, 2029.

Amendments introduced today also align Nova Scotia’s Fertility and Surrogacy Rebate with the new federal definition under the Medical Expenses Tax Credit.

Following Nova Scotia’s 2022-23 provincial budget, the federal government broadened its definition of medical expenses under the Medical Expenses Tax Credit to include payments for medical expenses by people using a surrogate or donor to become a parent. Nova Scotia will use the new federal definition to cover both fertility and surrogacy.

Quick Facts:

• the cost of expanding the Capital Investment Tax Credit is forecasted to be up to $35 million a year
• the Department of Finance and Treasury Board will administer both fertility and surrogacy rebates with an $8,000 annual limit

Additional Resources:

Bills tabled in the legislature are available at: https://nslegislature.ca/legislative-business/bills-statutes/bills/assembly-64-session-1

Capital Investment Tax Credit: https://novascotia.ca/finance/en/home/taxation/tax101/businesstax/corporateincometax/capitalinvestmenttaxcredit.aspx.html

Nova Scotia Fertility and Surrogacy Rebate: https://novascotia.ca/budget/docs/Tax-measures-Fertility-and-Surrogacy-Rebate.pdf