Newfoundland & Labrador Business Tax Credits, Incentives & Deductions Directory (2025)

Newfoundland & Labrador (NL) provides a full suite of business tax credits, incentives, and deductions to encourage investment, innovation, hiring, and growth across every sector of the province. Whether you operate a corporation, partnership, startup, manufacturer, agri-food business, or digital/media firm, leveraging these NL-specific programs—alongside generous federal business incentives—can dramatically reduce your tax bill and boost your company’s after-tax cash flow. This authoritative directory covers the main Newfoundland & Labrador business credits by category, with practical eligibility details, claim steps, and internal links for further reading.

  • What’s Covered: All NL's main business tax credits, grants, deductions, and essential eligibility info
  • Who’s Eligible: NL-registered corporations, small businesses, manufacturers, agri-businesses, innovation/tech, digital/media, and more
  • Quick Links: Directory, Related Topics

For Canada-wide programs, visit: Canada-Wide Business Credits

Modern St John's business district with office buildings and a NL business team collaborating

Newfoundland & Labrador Business Tax Credits Directory

NL Small Business Deduction (SBD) — Reduced corporate tax rate on the first $500,000 of active business income for Canadian-Controlled Private Corporations (CCPCs). Covers eligibility, phased-out thresholds, claim steps, and stacking with the federal SBD. Innovation & R&D Tax Credits — Refundable/non-refundable credits for eligible research and development, innovation, and digital media activities. Includes eligibility, rates, application, and stacking with federal SR&ED. Hiring, Training & Apprenticeship Incentives — Wage subsidies, co-op and apprenticeship tax credits, and workforce development grants for NL employers. Explains claim process and stacking with federal job/training programs. Manufacturing & Processing Investment Credits — Credits for eligible investments in manufacturing, processing, and advanced equipment. Covers capital investment, property tax incentives, and accelerated CCA. Digital Media, Film & Content Credits — Refundable credits and production incentives for interactive digital media, film/TV, and animation. Stacking rules with federal and Atlantic region programs. Clean Tech, Green Investment & Manufacturing Credits — Details on NL green/clean tech grants, PST/HST exemptions, and accelerated write-offs for energy and sustainability upgrades. Agriculture, Agri-Food & Rural Business Credits — Directory of NL-specific and federal-provincial partnership programs for primary producers, processors, and rural business investment. Includes grants, capital cost allowance, and cost-share programs. Other NL Business Credits & Deductions — Directory of additional credits: book publishing, charitable/political donation credits, property tax rebates, export incentives, and more.

NL Small Business Deduction (SBD)

  • Eligibility: Incorporated CCPCs with a permanent establishment in NL, earning active business income. $500,000 SBD limit shared among associated corporations.
  • Tax Rate: NL offers a reduced small business corporate tax rate (e.g., 3% for the first $500,000 in 2025; confirm for the current year).
  • How to Claim: Complete NL428 (NL Corporate Tax Calculation) with your T2 return. Allocate the limit among associated corporations.
  • Stacking: Claim the federal SBD together for a low combined tax rate on your first $500,000 of active business income.

Innovation & R&D Tax Credits

  • NL R&D Tax Credit: Refundable/non-refundable credit for eligible R&D expenditures performed in NL. Typically 15% of qualifying expenses, harmonized with federal SR&ED rules.
  • Stacking: Can be claimed in addition to federal SR&ED; file both federal T661 and NL schedules.
  • Application: File with your T2 corporate tax return; maintain technical documentation, payroll, and proof R&D was performed in NL.
  • Tip: Consult InnovateNL or the Department of Industry for additional grants or startup funding.

Hiring, Training & Apprenticeship Incentives

  • Employment & Training Grants: Wage subsidies, hiring grants, and co-op/apprenticeship credits for hiring new workers, students, or apprentices. Apply before hiring; keep records of payroll and student/trainee eligibility.
  • Canada Job Grant (NL stream): Covers up to 66% of training costs for new/existing employees (max $10,000/employee). Apply before starting training.
  • Stacking: Many NL and federal hiring incentives can be combined, but avoid claiming the same wage dollar more than once.

Manufacturing & Processing Investment Credits

  • Investment Tax Credit: Non-refundable credit for eligible expenditures on new/used manufacturing and processing equipment, buildings, or expansions. Typically 10% of eligible investment.
  • Accelerated CCA: Enhanced depreciation for manufacturing assets matching federal CCA classes.
  • Property Tax Incentives: Municipalities may offer discounts or rebates for manufacturing expansion or job creation.

Digital Media, Film & Content Credits

  • Film & Digital Media Tax Credits: Refundable credit for eligible NL labour and production costs for film, TV, and interactive digital media. Typically 25%–40% of eligible NL spend.
  • Eligibility: Incorporated NL companies, pre-approval by Creative NL, and minimum NL spending requirements. Keep payroll, residency, and project records.
  • Stacking: Can be combined with federal Canadian Film or Video Production Tax Credit or Interactive Digital Media Credit.

Clean Tech, Green Investment & Manufacturing Credits

  • NL Clean Technology Incentives: Provincial/federal grants and tax credits for renewable energy, green upgrades, and sustainable manufacturing/processing. Includes property tax reductions and PST/HST exemptions for qualifying equipment.
  • Accelerated CCA: Enhanced depreciation for clean energy, green manufacturing, and energy-efficient assets (federal/provincial conformity).
  • How to Claim: File with T2 and NL schedules; grants require direct application to relevant agency.

Agriculture, Agri-Food & Rural Business Credits

  • NL Agriculture Grants & Credits: Non-refundable credits and cost-share grants for farm equipment, value-added processing, and certified food safety/environmental practices.
  • Canadian Agricultural Partnership (CAP): Federal-provincial grants for innovation, risk management, and sustainability. Pre-approval and detailed records often required.
  • How to Claim: File NL428/NL479 for tax credits; direct application for CAP and grant programs. Keep all receipts and approvals.

Other NL Business Credits & Deductions

  • Book Publishing Tax Credit: Refundable credit for eligible NL-based book publishers on production and marketing costs.
  • Charitable & Political Donation Credits: NL corporations can claim a provincial credit for donations to registered NL charities and political parties, in addition to the federal credit. Receipts must be retained for audit.
  • Export & International Business Incentives: Grants and credits for NL businesses expanding into export markets or attending international trade events. Requires pre-application.
  • Municipal & Sector-Specific Credits: Some towns/cities offer property tax rebates, infrastructure grants, or sector-specific supports for eligible business investments.