New Brunswick Business Tax Credits, Incentives & Deductions (2025 Guide)
New Brunswick offers one of Canada's most business-friendly tax environments, featuring competitive corporate tax rates, streamlined administration, and a robust suite of provincial credits and incentives. Combined with generous federal programs, NB businesses can unlock substantial tax savings, refunds, and funding to fuel growth, innovation, and hiring. Whether you are a CCPC, manufacturer, digital/media company, farm, or startup, this in-depth guide details every major New Brunswick business tax credit, eligibility rule, and expert claim strategy for 2025.
NB Corporate Tax Highlights:
- Provincial general corporate tax rate: 14%
- Small business rate: 2.5% on first $500,000 active business income (see SBD below)
- Most credits are stackable with federal incentives (SR&ED, Clean Tech, Apprenticeship, etc.)
- Refundable and non-refundable credits, direct grants, and sectoral incentives available
- What’s Covered: NB’s most valuable business tax credits, grants, deductions, and eligibility info. Each directory entry below includes eligibility, step-by-step claim instructions, and calculation examples.
- Who’s Eligible: NB-registered corporations, small businesses, tech/innovation, manufacturers, agri-businesses, digital/media, and more
- Quick Links: Directory, Combining Credits, FAQ, Related Topics
For federal programs, visit: Canada-Wide Business Credits
New Brunswick Business Tax Credits Directory
Small Business Deduction — Reduces NB's corporate tax rate to 2.5% on the first $500,000 of active business income for eligible CCPCs. Eligibility: Incorporated CCPCs with taxable capital under $15M, active business income, and not a professional corporation (exceptions apply). How to claim: Complete NB428 Schedule on your T2 return, allocate among associated corps. Example: CCPC with $400,000 ABI pays 2.5% (NB) + 9% (federal) on that amount.
Full guide →
Innovation & R&D Tax Credits — Non-refundable NB credit for eligible R&D. Eligibility: NB corporations with qualifying SR&ED expenditures in NB. How to claim: File NB428 and federal SR&ED schedules, keep detailed project records. Example: $100,000 in eligible SR&ED = $15,000 NB credit (plus up to $35,000 federal if CCPC). Stackable. See details →
Digital Media & Film Credits — Refundable credits for eligible NB salaries for interactive digital media, video game, film, and animation projects. Eligibility: NB-incorporated companies, permanent establishment, project pre-approval required. How to claim: Register project, maintain payroll records, file NB schedules post-production. Example: $200,000 eligible NB payroll = up to $80,000 refund. Stacks with federal PSTC/IDMTC. Explore credits →
Clean Tech & Green/Manufacturing Credits — Covers tax credits for eligible green tech, manufacturing, and processing investments. Eligibility: NB corporations buying new, qualifying equipment for use in NB. How to claim: File relevant NB schedules, keep purchase/installation docs. Example: $500,000 new equipment = $50,000+ in credits/refunds possible (stacked). Learn more →
Hiring, Training & Apprenticeship Incentives — Tax credits and grants for employers hiring NB residents, apprentices, co-op students, underrepresented groups. Eligibility: NB employers, meet program guidelines, apply before hiring/training starts. How to claim: Online application, maintain payroll/training docs, claim on T2 if credit, or receive grant. Example: Wage subsidy covers 50% of new grad's salary for 6 months. See incentives →
Agriculture & Rural Business Credits — Credits and grants for NB farms, agri-food, fisheries, rural businesses. Eligibility: Registered NB business in ag/aquaculture sector; must meet activity and investment thresholds. How to claim: File NB schedules for tax credits, or apply via government portal for grants. Example: $20,000 grant for farm innovation project, $10,000 tax credit for new processing equipment. Read more →
Other NB Business Credits & Deductions — Book publishing, CEDIF, charitable/political donations, property tax rebates, export support, and more. Eligibility: Varies by program. How to claim: File NB schedules, retain receipts/certificates. Example: $5,000 NB corporate donation = $400+ in provincial credits. Browse all →
Tip: Most NB business credits require specific provincial schedules (NB428, NB479, NB S2, etc.) filed with your T2 corporate tax return. Retain all supporting documentation, including invoices, payroll, and project approvals. For complex claims or to maximize stacking, consult a tax professional.
Combining New Brunswick & Federal Credits: Stacking Strategies
Most New Brunswick business credits are fully stackable with federal incentives, allowing companies to maximize their refundable credits and grants. Here’s how to coordinate:
- SR&ED + NB R&D: Claim the federal SR&ED credit (up to 35% for CCPCs) and NB R&D credit (15%) on the same eligible expenditures. File both NB and federal schedules. Scenario: $100,000 eligible R&D = $50,000+ total credits/refunds.
- Digital Media/Film: Stack NB digital media/film credits (up to 40% refundable) with federal PSTC/IDMTC. Deduct any NB grant from the federal claim base to avoid double-dipping.
- Clean Tech/Manufacturing: Combine NB equipment credits with federal Accelerated Investment Incentive or Clean Technology ITC. Net cost of investment can drop by 40%+ after stacking.
- Hiring/Apprenticeship: Most NB wage subsidies and apprenticeship credits can be used with federal Canada Job Grant, Apprenticeship Job Creation Tax Credit, or SWPP. Confirm stacking limits and deduct grants from credit base if required.
Important: You cannot claim the same dollar of expense twice for two separate credits. Always deduct grant or provincial credit amounts from your federal credit base when required by program rules.
Frequently Asked Questions: NB Business Credits
Can I claim NB business credits as a sole proprietor?
Some credits (e.g., hiring grants, agriculture) are open to sole proprietors, but most tax credits require you to be an incorporated NB company. Always read program eligibility or check with Service NB.
Do I need to apply before making investments or hiring?
Many credits (digital media, film, hiring, some grants) require pre-approval or registration before you incur expenses. Always check the claim process before starting your project or hiring new staff.
How do refundable and non-refundable credits differ?
Refundable credits pay a cash refund even if you owe no NB corporate tax. Non-refundable credits only offset taxes owing and cannot generate a cash payout. Most major NB credits (media, film, hiring) are refundable.
Can I carry forward unused NB credits?
Non-refundable credits can generally be carried forward up to 20 years or back 3 years. Refundable credits pay out in the claim year. Confirm rules for your specific program.
What records do I need for audit?
Keep all documentation: invoices, payroll records, contracts, eligibility certificates, applications, and technical/project files. NB and federal authorities can audit claims for up to 7 years.
Are NB business credits available to foreign-owned companies?
Yes, as long as you have a permanent establishment in NB and meet program requirements. Some credits may require Canadian-controlled status for maximum benefit.