Atlantic Canada Green & Clean Tech Business Tax Credits & Incentives (2024)
Unlock climate-focused business tax credits in Newfoundland & Labrador, Nova Scotia, New Brunswick, and PEI. Compare eligibility, claim process, and how to stack with federal incentives for clean growth and energy efficiency.
Directory: Atlantic Provincial Green & Clean Tech Tax Credits
Atlantic Canada: Clean Energy & Green Tech Tax Incentives Overview
Across Atlantic Canada, provincial governments are expanding business incentives to accelerate clean technology adoption, energy efficiency, and climate action. Newfoundland & Labrador, Nova Scotia, New Brunswick, and Prince Edward Island each offer unique programs—often stackable with generous federal measures—targeting renewable energy, clean manufacturing, building retrofits, electric vehicles, and more.
These incentives are essential for businesses seeking to reduce costs, modernize operations, and meet regulatory or customer expectations for sustainability. The region’s clean tech sector is rapidly growing, with support for R&D, commercialization, and deployment of technologies that cut emissions, improve energy use, and build a greener Atlantic economy.
Below, we break down major Atlantic green/clean tech tax credits and incentives, including eligibility, application steps, calculation examples, and tips for stacking with federal programs.
Newfoundland & Labrador Green/Tech Incentives
- Green Technology Tax Credit (proposed, 2024): Up to 20% refundable credit on eligible investments in clean tech manufacturing or equipment.
Eligibility: Incorporated NL businesses investing in new renewable energy, energy-efficient, or pollution-reducing assets.
Claim Process: Complete Schedule 343 of the NL Corporate Income Tax Return and provide supporting invoices/certification.
Example: $100,000 spent on solar panels = $20,000 credit.
Documentation: Keep supplier contracts, proof of installation, and any required certifications. - Innovation & Business Development Fund (IBDF): Grant funding for commercialization of green technologies, energy retrofits, and clean manufacturing.
Nova Scotia Green/Tech Incentives
- Nova Scotia Innovation Equity Tax Credit (IECC): Up to 35% non-refundable credit for investments in eligible clean tech companies.
Eligibility: Investors (business or individual) in NS-based clean tech startups.
Claim Process: Obtain tax credit certificate from investee, file with NS PIT or corporate return.
Example: $50,000 invested = $17,500 credit.
Documentation: Investment agreements, NSIECC certificate. - Low Carbon Communities & Business Energy Rebates: Rebates for energy efficiency retrofits, HVAC upgrades, EV chargers, etc.
Claim Process: Apply via Efficiency Nova Scotia, submit invoices, proof of installation.
New Brunswick Green/Tech Incentives
- NB Small Business Investor Tax Credit: Up to 50% non-refundable credit for investments in eligible NB clean tech companies.
Eligibility: Investors in NB-based clean tech or manufacturing businesses.
Claim Process: Apply for tax credit certificate, claim on NB tax return. - NB Energy Smart Commercial Buildings Grant: Funding for energy efficiency upgrades, lighting, heat pumps, and green retrofits.
Claim Process: Submit application to NB Power, provide auditor’s report or invoices.
Prince Edward Island Green/Tech Incentives
- PEI Clean Tech Incentive Program: Grants and financing for clean tech adoption, energy retrofits, and renewable installations.
Eligibility: PEI companies and farms.
Claim Process: Apply to Innovation PEI, submit project plan, and show proof of expenditures.
Example: Up to 25% of project costs for eligible clean tech upgrades.
Documentation: Application, receipts, technical specs. - PEI Business Energy Rebates: Rebates on high-efficiency equipment, lighting, and building improvements.
Stacking Atlantic & Federal Green Tech Credits
Federal programs available to Atlantic businesses include the Clean Technology Investment Tax Credit (30% refundable), Clean Electricity ITC, Clean Hydrogen ITC, and SR&ED for R&D. Most provincial credits/grants can be stacked with federal credits, but must be netted against each other in your tax calculation.
Scenario: A Nova Scotia manufacturer installs $150,000 in solar panels. They receive a 30% federal Clean Tech ITC ($45,000) and a $10,000 Efficiency Nova Scotia rebate. Their net cost ($95,000) may qualify for further corporate tax deductions or Atlantic Innovation Fund support.
Best Practice: Always confirm stacking rules and order of application with your tax advisor. Keep all documentation for each claim.
Documentation & Claim Tips
- Save all purchase/installation invoices, contracts, and technical specs.
- Obtain and retain provincial/federal tax credit certificates, if required.
- For grant programs, keep correspondence, project approvals, and proof of payment.
- Track project timelines and ensure assets meet technical criteria.
- Consider having a third-party energy audit for larger projects.
FAQs: Atlantic Green & Clean Tech Credits
- Can I claim both federal and provincial green tech credits?
- Yes, most Atlantic programs are stackable with federal incentives. Some require you to subtract provincial grants from your federal claim.
- Are rebates and grants taxable?
- Generally, business rebates and grants reduce your claimable tax credit basis and may be included in business income. Check with your accountant.
- What if my business operates in multiple Atlantic provinces?
- You may claim credits in each province where eligible investments are made, but must file separately and meet each program’s requirements.
- How long do I need to keep documentation?
- CRA and provincial tax authorities may audit claims for up to 6 years. Retain all records, certificates, and proof of payment.
- Where can I get more help?
- Contact your local provincial tax authority, Innovation PEI, Efficiency NS, NB Power, or a qualified tax professional.