If you’re doing research and development in New Brunswick, you can combine provincial and federal tax credits to lower your R&D expenses. The New Brunswick Research and Development Tax Credit works alongside the federal SR&ED program, not as a replacement. Used together, these programs can return a meaningful portion of your eligible R&D spending in cash.
According to the Province of New Brunswick, the provincial credit is refundable at 15% of eligible R&D expenses incurred in the province.
The New Brunswick Research and Development Tax Credit acts as a provincial top-up to SR&ED. You must first determine if your work qualifies as Scientific Research and Experimental Development (SR&ED) under federal rules.
SR&ED is administered by the Canada Revenue Agency (CRA). It supports work that involves:
Eligible SR&ED expenditures can include:
These rules are set federally and apply across Canada.
Once your work qualifies for SR&ED, New Brunswick allows you to claim an additional 15% refundable tax credit on eligible expenditures incurred in New Brunswick.
Key features of the New Brunswick R&D Tax Credit:
Because it’s refundable, early-stage companies and startups can still receive cash support even if they are not yet profitable.
The province generally follows SR&ED definitions. Eligible costs must:
Common qualifying expenses include:
Expenses outside New Brunswick do not qualify for the provincial credit, even if they are accepted under federal SR&ED.
You do not file a separate application for the New Brunswick credit. Instead, it is claimed through your corporate income tax return, alongside your SR&ED claim.
Typical process:
The same eligible expenditure base is used, but the credits are calculated independently. Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds, especially if you operate in more than one jurisdiction.
Claiming provincial credit without SR&ED eligibility
The New Brunswick R&D Tax Credit depends on SR&ED rules. If CRA denies your SR&ED claim, the provincial credit is also at risk.
Including out-of-province costs
Only R&D work performed in New Brunswick qualifies. Payroll or contract work done elsewhere must be excluded.
Assuming the credit is non-refundable
Some businesses miss out by assuming the credit only reduces tax payable. In New Brunswick, the credit is refundable, even if you owe no tax.
Weak technical documentation
CRA reviews SR&ED first. Poor technical narratives can delay or reduce both your federal and provincial credits.
Q: Can I claim the New Brunswick R&D Tax Credit with SR&ED?
Yes. The provincial credit is designed to be claimed in addition to federal SR&ED, using the same eligible R&D expenditures.
Q: Is the New Brunswick R&D Tax Credit refundable?
Yes. The credit is refundable, meaning you can receive a cash refund even if your business has no provincial tax payable.
Q: Do startups qualify for the New Brunswick R&D Tax Credit?
Yes, as long as the business performs eligible SR&ED work in New Brunswick. Profitability is not required.
Q: Where must R&D activities be performed?
All eligible R&D activities must be carried out in New Brunswick. Costs incurred outside the province do not qualify.
Q: How do I apply for the credit?
The credit is claimed through your corporate income tax return, alongside your federal SR&ED filing.
GrantHub tracks hundreds of active grant and tax credit programs across Canada—check which ones match your business profile.
If your business is doing technical development in New Brunswick, combining SR&ED with the New Brunswick R&D Tax Credit can significantly reduce your R&D costs. The key is confirming eligibility early and tracking where your R&D work is actually performed. GrantHub helps Canadian businesses identify provincial and federal programs that fit their exact profile, so you can plan your R&D funding with confidence.
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