Nova Scotia Innovation Equity Tax Credit (T225)

The Nova Scotia Innovation Equity Tax Credit (Innovation ETC) is a non-refundable tax credit that you can claim if you’re an eligible investor who invested in an approved corporation.

You can claim this tax credit if you invested in an approved corporation and:

  • You were a resident of Nova Scotia on December 31, 2024
  • You are at least 19 years of age

Note: If you invested in a convertible debenture, you can’t be a director of the approved corporation or own 25% or more of the corporation (or any corporation related to approved corporation) as an individual or part of a group of related individuals.

The maximum annual eligible investment you can claim the tax credit on is $250,000. If you made eligible investments in 2024 or in the first 60 days of 2025, you can claim a credit equal to:

  • 45% of your eligible investments (up to a maximum credit of $112,500) for investments in certain classifications of the oceans technology and life sciences sectors
  • 35% of your eligible investments (up to a maximum credit of $87,500) for all other innovation investments

You can find your credit amount on the investment certificate issued by the approved corporation.

Note: As an eligible investor, you must hold your investment in the approved corporation for at least 4 years; otherwise you might have to pay back the credit amount.

If you don’t need the full credit amount to reduce your Nova Scotia tax payable for the year, you can carry forward the unused portion of the credit for 7 years. You can also carry it back 3 years to any tax ending after April 1, 2024.

Remember to keep all your documents if you’re filing electronically, just in case the CRA asks to see them later. If you’re filing a paper return, remember to attach your T225 form and the investment certificate.

Follow these steps in H&R Block’s 2024 tax software:

Before you begin, make sure that you told us that you lived in Nova Scotia on December 31, 2024.

  1. On the left navigation menu, under the Credits & deductions tab, click Tax Topics.

  2. Select the Investment income & expenses checkbox.

  3. At the bottom of the page, click Add selected topics to my return.

  1. Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Nova Scotia innovation equity tax credit (T225), and then click Continue.

  2. When you arrive at the Nova Scotia equity tax credit page, enter your information into the tax software.