Fairtax is an industry leader in obtaining government funding in Canada. Our dedicated team of Funding Specialists understands the intricacies of government grant and incentive programs, optimally positioning your organization to secure government funding. We cut through the confusion, uncovering the specific financial resources that allow you to focus on growing through innovation, training employees, and taking your operations to the next level.
Innovation Rebate Program (IRP)
The Innovation Rebate Program (IRP) provides financial incentives for projects that enable a company to increase innovation capacity through private-sector capital investments, through the adoption of new technologies and business processes. The IRP will work as a rebate against a company’s direct costs.
Through the IRP, a company will be eligible for a rebate of 25% of all eligible project costs to a maximum rebate of $3,750,000, over a 24-month period
Eligible Projects must be approved by NSBI prior to March 31, 2020.
An eligible project must have a total budgeted Nova Scotia investment no less than $2 Million and no more than $15 Million (excluding tax).
All projects must be completed within a 3-year period.
- In order to have a project approved by NSBI for purposes of the IRP, each applicant must:
- Be a taxable Canadian corporation as defined in subsection 89(1) of the Income Tax Act (Canada) that was incorporated in Canada (either federally or in one of the provinces)
- Have a permanent establishment in Nova Scotia and be in operation for a period of at least 12-months, or a planned permanent establishment (as defined in subsection 400(2) of the regulations to the Income Tax Act (Canada)) in the case of new companies to the province
- Be engaged in one of the following industries (primary business activity):
- advanced manufacturing and processing
- development of non-traditional sources of energy
- aerospace and defence
- information and communication technology (ICT)
- ocean technology
- professional, scientific, and technical services
- excluding the following:
- legal services
- tax preparation
- bookkeeping and payroll services
- advertising and related services
- photographic services
- veterinary services
- translation and interpretation services
- Implementation of new, or significantly improved, production processes or waste stream processing system
- Investment in production capacity to enter new markets and/or produce new products
- Establishment of new production facilities in Nova Scotia
- Not be engaged in one of following ineligible industries (primary business activity):
- natural resource harvesting and extraction;
- primary agriculture (including cannabis);
- wholesale trade;
- retail trade (personal and domestic services- including but not limited to esthetics, housekeeping, landscaping, home security);
- car/appliance/general repair;
- film production;
- food services;
- publishing companies, print centres and copy shops;
- electric power generation, transmission and distribution; and
- any industry not otherwise mentioned.
- Demonstrate, to the satisfaction of Nova Scotia Business Inc. (NSBI), that it is financially viable and has reasonable prospects for continued growth and success.
- Be in compliance with the Income Tax Act (Canada), the Environment Act (Nova Scotia), the Occupational Health and Safety Act (Nova Scotia) and the Labour Standards Code (Nova Scotia), and the Accountability in Economic Development Assistance Act (Nova Scotia).
- Direct costs of advanced machinery, equipment, clean technology, software, and hardware (including associated transportation and commissioning costs)
- Used equipment costs (if applicable)
- New building, or building alterations, related to the commissioning of equipment or implementation of business process improvements to a maximum of 25% of total eligible project costs
- Consulting, engineering, and subcontracting expenses directly related to the eligible project
- Company incurred labour and wage costs for work performed directly on the eligible project
- Cost of industry or product certifications required for entry into new markets
For Greater Certainty
- Used equipment may be eligible provided it meets the criteria and was not originally purchased with other federal, provincial or municipal government assistance;
- Rolling stock and watercraft are excluded from eligible project costs;
- Related party transactions must be at market rate;
- NSBI requires satisfactory evidence of the market rate;
- Expenditures eligible for incentives under the Nova Scotia Capital Investment Tax Credit (CITC) are excluded from eligible project costs;
- Taxes cannot be included in eligible project cost;
- The maximum amount of eligible project costs to which the IRP rebate will be applied is $15,000,000.