Nunavut Business Tax Credits, Incentives & Deductions Directory (2025 Guide)
Nunavut businesses benefit from a unique combination of territorial and federal tax credits, deductions, and direct support programs. Whether you operate a corporation, partnership, startup, or small business, understanding Nunavut-specific opportunities—alongside Canada-wide business incentives—can significantly lower your tax bill and support growth in the North. This authoritative directory covers Nunavut's main business credits, hiring and training supports, innovation grants, clean tech incentives, and how to stack them with federal programs for maximum impact.
Nunavut Business Tax Credits & Incentives Directory
Nunavut Small Business Deduction (SBD) — Nunavut offers a reduced corporate income tax rate on the first $500,000 of active business income for Canadian-Controlled Private Corporations (CCPCs). This deduction is stackable with the federal SBD.
Eligibility: Incorporated CCPCs with a permanent establishment in Nunavut, earning active business income.
How to claim: File your federal T2 return with the NU428 (Nunavut Corporate Tax Calculation) schedule. Allocate the $500,000 SBD among associated corporations.
Tip: If your business is part of a group, ensure the $500,000 limit is properly shared across all provinces/territories.
Eligibility: Incorporated CCPCs with a permanent establishment in Nunavut, earning active business income.
How to claim: File your federal T2 return with the NU428 (Nunavut Corporate Tax Calculation) schedule. Allocate the $500,000 SBD among associated corporations.
Tip: If your business is part of a group, ensure the $500,000 limit is properly shared across all provinces/territories.
Nunavut Innovation, R&D & Digital Media Credits — Nunavut businesses can access a non-refundable R&D tax credit for eligible scientific research and experimental development (SR&ED) expenditures performed in the territory.
Eligibility: Incorporated businesses performing eligible R&D work (as defined for the federal SR&ED program) in Nunavut.
How to claim: File federal T661 (SR&ED claim) and claim the Nunavut (NU479) schedule on your T2. Credit is non-refundable but can offset Nunavut corporation tax.
Stacking: Combine with the federal SR&ED credit for maximum cash refund or tax reduction.
Tip: Keep detailed technical project records and payroll documentation for audit.
Eligibility: Incorporated businesses performing eligible R&D work (as defined for the federal SR&ED program) in Nunavut.
How to claim: File federal T661 (SR&ED claim) and claim the Nunavut (NU479) schedule on your T2. Credit is non-refundable but can offset Nunavut corporation tax.
Stacking: Combine with the federal SR&ED credit for maximum cash refund or tax reduction.
Tip: Keep detailed technical project records and payroll documentation for audit.
Nunavut Hiring, Training & Wage Subsidy Incentives — Employers in Nunavut can access a range of wage subsidies, training grants, and apprenticeship incentives.
Key programs include:
Documentation: Keep payroll records, training receipts, and grant approval letters for 7 years for audit.
Key programs include:
- Wage subsidies for hiring Inuit, youth, apprentices, or underrepresented groups (administered by the Government of Nunavut, Inuit organizations, or the federal government).
- Canada-Nunavut Job Grant (CNJG): Covers up to 2/3 of eligible third-party training costs for new or existing employees (max $10,000/employee/year).
- Federal Apprenticeship Job Creation Tax Credit (AJCTC): 10% of eligible apprentice wages (up to $2,000/year/apprentice), stackable with Nunavut programs.
- Canada Summer Jobs, Student Work Placement Program, and federal wage subsidies for youth, Indigenous, and northern workers.
Documentation: Keep payroll records, training receipts, and grant approval letters for 7 years for audit.
Nunavut Clean Tech, Green Investment & Manufacturing Credits — Nunavut offers PST (sales tax) exemptions and accelerated Capital Cost Allowance (CCA) for eligible investments in clean technology, renewable energy, and advanced manufacturing equipment.
Eligibility: Nunavut-registered businesses investing in clean tech, manufacturing upgrades, or renewable energy systems (solar, wind, energy-efficient equipment).
How to claim: File for PST exemption at point of sale or apply for a post-purchase rebate. Claim accelerated CCA on your T2 tax return using the appropriate federal classes (e.g., 43.1/43.2).
Stacking: Combine with federal Clean Technology Investment Tax Credit (ITC), Canada Greener Homes grant, and utility rebates for maximum benefit.
Tip: Consult Nunavut Economic Development or your utility for current grant opportunities.
Eligibility: Nunavut-registered businesses investing in clean tech, manufacturing upgrades, or renewable energy systems (solar, wind, energy-efficient equipment).
How to claim: File for PST exemption at point of sale or apply for a post-purchase rebate. Claim accelerated CCA on your T2 tax return using the appropriate federal classes (e.g., 43.1/43.2).
Stacking: Combine with federal Clean Technology Investment Tax Credit (ITC), Canada Greener Homes grant, and utility rebates for maximum benefit.
Tip: Consult Nunavut Economic Development or your utility for current grant opportunities.
Nunavut Export, Infrastructure & Community Enterprise Grants — Nunavut businesses can access targeted grants for export development, business expansion, infrastructure upgrades, and community economic development.
Eligibility: Incorporated or registered businesses, Inuit organizations, and community enterprises operating in Nunavut.
How to claim: Apply through the Nunavut Department of Economic Development & Transportation, federal CanExport, or Inuit economic development corporations.
Documentation: Submit business plans, project budgets, and outcome reports as required.
Eligibility: Incorporated or registered businesses, Inuit organizations, and community enterprises operating in Nunavut.
How to claim: Apply through the Nunavut Department of Economic Development & Transportation, federal CanExport, or Inuit economic development corporations.
Documentation: Submit business plans, project budgets, and outcome reports as required.
Other Nunavut Business Credits & Deductions — Includes property tax rebates (in select communities), charitable/political donation credits, and PST exemptions for qualifying purchases.
Tip: Always check for new or pilot programs, as Nunavut often launches targeted incentives for northern, infrastructure, or skills development priorities.
Tip: Always check for new or pilot programs, as Nunavut often launches targeted incentives for northern, infrastructure, or skills development priorities.
Tip: Most Nunavut business credits require you to file specific territorial schedules (NU428, NU479, etc.) with your T2 return. Wage subsidies and grants often require pre-application and supporting documentation. For complex or large claims, consult a Nunavut tax professional or business advisor.
Stacking Nunavut & Federal Business Credits
- Nunavut business credits are designed to be fully stackable with federal programs such as SR&ED, Clean Tech ITC, Small Business Deduction, Apprenticeship Credits, and more.
- For example, Nunavut CCPCs can combine the Nunavut and federal SBD for a low combined tax rate on the first $500,000 of active business income.
- Innovation/R&D projects may qualify for both the Nunavut non-refundable R&D credit and the federal SR&ED program.
- Clean tech investments can combine PST exemption, accelerated CCA, and the federal Clean Technology ITC.
- Wage subsidies and training grants are often stackable with federal supports, but never double-claim the same dollar of expense.
Practical Example: A Nunavut construction firm invests $200,000 in solar panels. They claim a PST exemption ($10,000), accelerated CCA (deduct $200,000 in year 1), and a 30% federal ITC ($60,000). If hiring a new apprentice, they also receive a $2,000 AJCTC and a Nunavut wage subsidy for training. Total net cost: $128,000 after all incentives.
Claiming Tips & Audit-Ready Documentation
- Always keep original receipts, grant approval letters, wage and training documentation, payroll records, and PST exemption forms for at least 7 years.
- Maintain a file for each credit or grant, including application forms and payment confirmations.
- For wage subsidies and training grants, keep detailed records of employment, training completion, and payroll.
- For innovation/R&D credits, retain technical project documentation, time logs, and contracts.
- Respond promptly to any audit or review requests from the CRA, Nunavut Finance, or federal agencies.
Related Nunavut & Federal Business Credit Resources
- Canada-Wide Business Tax Credits – Main directory for all federal business credits
- British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, PEI, New Brunswick, Nova Scotia, NL, Yukon, NWT
- CRA Corporation Tax Credits
- Nunavut Economic Development & Business Support
- Canadian Northern Economic Development Agency