What’s in this article?
The Newfoundland and Labrador Research and Development Tax Credit is fully refundable at a rate of 15% of eligible expenditures for scientific research and experimental development (SR&ED) carried out in this province. The tax credit is applied against the total tax payable on your return and any remaining balance is refunded.
The tax credit is available to individuals, including beneficiaries of a trust and members of a partnership, with business income from a permanent establishment within Newfoundland and Labrador in the tax year. You must also have eligible expenditures for scientific research and experimental development carried out in Newfoundland and Labrador in the year. Expenses that qualify for the federal SR&ED tax credits are eligible.
Eligible expenditures do not have to be reduced by any by government and non-government assistance received, except with respect to HST and GST input tax credits.
Follow these steps in H&R Block’s tax software to file your 2015 taxes:
Important: Before you begin, ensure that you told us that you lived in NEWFOUNDLAND AND LABRADOR on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:
- Click the HOME tab.
- Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:
Once you have confirmed your residence location, claim the Newfoundland and Labrador research and development tax credit by following these steps:
- Click the PREPARE tab.
- Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
- Click the checkbox labelled I was employed or I worked for myself then select the province or territory of self-employment from the drop-down menu.
- Scroll to the bottom of the page and click Continue.
- You will find yourself on the PREPARE tab under the EMPLOYMENT icon.
- Under the CREDITS AND REBATES heading, click the checkbox labelled Newfoundland and Labrador research and development tax credit (individuals).
- Click Continue.
When you arrive at the Newfoundland and Labrador research and development tax credit page, enter your information into the tax software.
- Summary of provincial and territorial research & development (R&D) tax credits (CRA website)
- T1129: Newfoundland and Labrador Research and Development Tax Credit (Individuals) (CRA website)
- Section 42 of the Income Tax Act (Newfoundland and Labrador) (House of Assembly Newfoundland and Labrador website)