New Brunswick provincial tax credits — NB Low-Income Tax Reduction, NB Harmonized Sales Tax Credit, Seniors' Home Renovation Tax Credit, Tuition Amount, NB Small Business Investor Tax Credit (refundable 50% for individuals), NB Film Tax Credit. Triggers "New Brunswick tax credits", "Form NB428",…
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Tax year
Confirm 2025 (calendar) or fiscal year for corporates.Section 2
Province of residence on 31 Dec 2025
Must be NB for personal credits (R1 refusal if not).Section 2
Family net income
Line 23600 + spouse, for LITR and NBHSTC.Section 2
Age and disability status
Of taxpayer/spouse for the Seniors' Home Renovation Tax Credit.Section 2
NB SBITC certificate (NB-SBITC-1)
Required before claim; obtained from NB Finance after the eligible business issues qualifying shares.Section 2
Eligible expense documentation
Invoices, paid receipts, contractor licence info for the Seniors' Home Renovation credit.Section 2
Eligible NB-resident labour breakdown
For the NB Film Tax Credit.Section 2
R-NB-C-1
Non-resident of NB on 31 Dec 2025 — defer to province of residence; do not file NB428.R-NB-C-1
R-NB-C-2
Part-year NB resident — out of scope; refer to credentialed reviewer (proration of LITR and refundable credits is non-trivial).R-NB-C-2
R-NB-C-3
NB SBITC claim where the investor is connected to the issuing corporation (>10% control, or director/officer with prescribed exceptions) — refer to NB Finance; eligibility requires written confirmation.R-NB-C-3
R-NB-C-4
NB Film Tax Credit for a production that has NOT received a Part A certificate from NB Film before principal photography — out of scope.R-NB-C-4
R-NB-C-5
Retroactive claims older than statutory amendment window (T1: 10 calendar years; SBITC: per certificate terms) — refer to credentialed reviewer.R-NB-C-5
R-NB-C-6
Any claim involving non-arm's length transactions or share redemptions inside the SBITC 4-year hold period — out of scope; clawback rules apply.R-NB-C-6
Type
Non-refundable. Reduces NB tax (line 42800) to zero but cannot create a refund.Section 3
Base reduction (single)
$818Section 3, Computation (2025)
Base reduction (family)
$1,326Section 3, Computation (2025)
Reduction for dependant spouse / common-law partner
$674Section 3, Computation (2025)
Reduction per eligible dependant child under 19
$674Section 3, Computation (2025)
Phase-out rate
3%Section 3, Computation (2025)
Claim point
Schedule built into Form NB428, Part C.Section 3
Eligibility conditions
Resident of NB on 31 Dec 2025. Filed a T1 General. Only one spouse claims the family reduction.Section 3
Interaction rule
Applied after non-refundable tax credits but before the LITR cannot reduce NB tax below zero — any excess is forfeit. If both spouses qualify individually, the higher-income spouse generally claims to maximise the reduction; model both ways.Section 3
Type
Refundable. Paid quarterly alongside the federal GST/HST Credit. Fully integrated administration via CRA — no separate application.Section 4
2025 benefit year amount per adult
$300Section 4
2025 benefit year amount per child
$100Section 4
Phase-out rate
2%Section 4
Eligibility conditions
Resident of NB at the beginning of the payment month. Age 19+ OR has a spouse OR is a parent. Has filed a 2024 return (even with zero income) — credit is auto-calculated.Section 4
Type
Refundable.Section 5
Rate
10%Section 5
Cap
Eligible expenses up to $10,000 per year, so maximum credit = $1,000 / yearSection 5
Claim
Schedule NB(S12) attached to T1; reported on Form NB428 line 47900.Section 5
Eligibility conditions
Taxpayer is 65+ at end of year OR lives with a senior family member who is 65+, OR the senior is the spouse/common-law partner. Renovation is to the principal residence in NB. Purpose: improve accessibility, mobility, or reduce risk of harm for the senior (e.g., grab bars, walk-in tubs, ramps, stair lifts, non-slip flooring, lever handles, widened doorways). Expenses must be paid in the calendar year (or by 31 Jan of the following year for arrangements entered before year-end, per CRA practice).Section 5
Ineligible expenses
Routine repairs and maintenance (roof, painting, landscaping not accessibility-related). Appliances and electronics not attached to the dwelling. Services performed by a non-arm's length person who is not GST/HST registered.Section 5
Statutory basis
Small Business Investor Tax Credit Act (SNB 2003, c S-9.05) and regulations. Administered by NB Department of Finance and Treasury Board, Revenue Administration Division.Small Business Investor Tax Credit Act (SNB 2003, c S-9.05)
What qualifies
Newly issued equity (common voting shares; certain preferred shares) of a registered Eligible Business Corporation (EBC), Community Economic Development Corporation (CEDC), or Co-operative.Section 6
Issuing corporation requirements
Be registered with NB Finance and hold a current SBITC registration certificate. Have a permanent establishment in NB. Have no more than 75 employees at registration. Have at least 75% of wages/salaries paid to NB residents (or 50% if engaged in export). Use the funds for active business operations (not money lending, real estate development for resale, financial services, retail not adding value, professional practices reserved to regulated members, or activities offending public policy).Section 6
Minimum hold period
Investor must hold the shares for 4 years. Early redemption, sale to a non-arm's length party, or wind-up triggers clawback of the credit.Section 6
Step 1
Eligible business applies for and receives the SBITC registration certificate from NB Finance.
Step 2
Investor subscribes for qualifying shares; funds are paid to the corporation.
Step 3
Corporation issues Form NB-SBITC-1 (Tax Credit Certificate) to the investor after share issuance, normally within 90 days.
Step 4
Investor claims the credit on the personal T1 (line 47900 / Form NB428 Part C) or corporate T2 (Schedule 305 NB), attaching NB-SBITC-1.
Step 5
Unused individual credit is refunded; unused corporate credit carries forward 7 years / back 3 years.
Connected-investor exclusion
A claim is denied if the investor (alone or with non-arm's length persons) controls more than 10% of any class of issued shares of the EBC, or is a "specified shareholder" within meaning of the Income Tax Act (Canada). Founders investing in their own company are not eligible — the credit is designed for arm's length angel investors.Section 6
Type
Refundable corporate credit.Section 7
Base rate (2025)
25%Section 7
Rural bonus rate (2025)
+5%Section 7
Cap
50% of total production costsSection 7
Eligibility conditions
Corporation with a permanent establishment in NB. Production has received a Part A certificate from NB Film (Department of Tourism, Heritage and Culture) before principal photography. Production is a film, television, or interactive digital media project (excluding news, sports, advertising, pornography, and certain reality programming). Eligible labour = salaries and wages paid to NB residents who worked on the production in NB.Section 7
Step 1
Pre-production: Part A application to NB Film.
Step 2
Post-production: Part B certificate of completion from NB Film with audited labour schedule.
Step 3
Claim on T2 Schedule 305 (NB), attaching Part B certificate.
Interaction with federal credits
Stacks with the federal Canadian Film or Video Production Tax Credit (CPTC) or Film or Video Production Services Tax Credit (PSTC) — but only one of the two federal credits, never both, and the NB credit is computed on a labour base reduced by federal assistance per the grind-down rule.Section 7
Default 1
Always require the NB-SBITC-1 certificate before quoting an SBITC credit. Do not estimate from share-subscription documents alone — the certificate is the operative document, and NB Finance routinely denies issuance where end-use covenants are missing.Section 10
Default 2
Treat the 4-year hold period as binding for engagement-letter purposes. Flag in the cover letter that disposition before March 2029 (in the example) triggers full clawback.Section 10
Default 3
For the Seniors' Home Renovation Credit, default to the most restrictive interpretation of "principal-purpose accessibility" when an expense could be characterised as routine renovation. CRA and NB Finance both deny mixed-purpose claims absent contemporaneous documentation linking the expense to the senior's mobility or safety needs.Section 10
Default 4
For LITR, model both spousal claim positions and use the one producing the lower combined NB tax.Section 10
Default 5
For NBHSTC, never assume eligibility without confirming province of residence on the first day of the payment month — moves out of NB during the benefit year unwind the credit.Section 10
Default 6
For NB Film Tax Credit, require both Part A and Part B certificates on file before posting the receivable. Verbal commitments from NB Film are insufficient.Section 10
Default 7
Do not stack the NB SBITC against any other equity-based provincial investor credit on the same shares (no double-dipping across provinces for inter-provincial investors).Section 10
Default 8
Refer out any cross-border investor scenario (US individual investing in NB EBC) — Canada–US treaty interaction with refundable credits is fact-specific.Section 10
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
This skill catalogues the principal New Brunswick (NB) provincial tax credits available to individuals and corporations for the 2025 tax year. It complements nb-individual-return.md (the Form NB428 computation skill) by isolating the credit mechanics, eligibility tests, application procedures, and refundability rules. NB administers most personal credits through the CRA via the federal–provincial Tax Collection Agreement; the NB Small Business Investor Tax Credit (NB SBITC) and the NB Film Tax Credit are administered directly by the Province (Department of Finance and Treasury Board and Opportunities NB).
Personal credits table (Schedule on NB428 / Schedule NB(S12) / Schedule NB(S11) / NB-SBITC-1 certificate from NB Finance)
| Credit | Type | 2025 amount / rate | Mechanism |
|---|---|---|---|
| NB Low-Income Tax Reduction (LITR) | Non-refundable | Reduces NB tax to zero up to threshold; phase-out 3% | Schedule on NB428 |
| NB Harmonized Sales Tax Credit (NBHSTC) | Refundable | $300 / adult + $100 / child; quarterly | Auto via T1 (CRA) |
| NB Seniors' Home Renovation Tax Credit | Refundable | 10% × eligible expenses, max $10,000 base → $1,000 credit | Schedule NB(S12) |
| NB Tuition Amount | Non-refundable | 9.40% × eligible tuition fees (post-secondary) | Schedule NB(S11) |
| NB Small Business Investor Tax Credit (individuals) | Refundable | 50% of eligible investment; max $250,000 invested → $125,000 credit / year | NB-SBITC-1 certificate from NB Finance |
Corporate credits table (NB-SBITC-1 certificate / Application via NB Film / Schedule 360 (federal T2))
| Credit | Type | 2025 amount / rate | Mechanism |
|---|---|---|---|
| NB SBITC (corporations & trusts) | Non-refundable, 7-year carry-forward | 15% × eligible investment; max $500,000 invested → $75,000 credit / year | NB-SBITC-1 certificate |
| NB Film Tax Credit | Refundable | 25% (resident labour) – 30% (with bonus) of eligible NB labour | Application via NB Film |
| NB Research and Development Tax Credit | Refundable | 15% of eligible SR&ED expenditures | Schedule 360 (federal T2) |
Newcomers to NB file Form RC151 once. Marital status changes must be reported via RC65 to avoid clawback. Direct deposit via CRA "My Account".
Itemised invoices showing GST/HST and contractor's BN. Proof of payment. Photos optional but useful on audit.
The NB SBITC is one of the most generous angel-investor credits in Canada because the individual rate is refundable at 50%. Most other provinces cap their analogues at 30% non-refundable.
Rates and caps table (Section 6, Rates and caps (2025))
| Investor type | Rate | Max eligible investment / year | Max credit / year | Refundability |
|---|---|---|---|---|
| Individual | 50% | $250,000 | $125,000 | Refundable |
| Corporation or trust | 15% | $500,000 | $75,000 | Non-refundable; 7-year carry-forward, 3-year carry-back |
Stacks freely with federal Lifetime Capital Gains Exemption on later disposition (subject to QSBC rules and the OBBBA-era adjustments — out of scope here; refer to a federal skill). Stacks with flow-through share treatment only if the issuer is also a Principal Business Corporation in mining/oil & gas (rare for SBITC issuers).
Form / line reference table (Section 8)
| Credit | Form / line |
|---|---|
| Non-refundable personal credits (basic, age, spouse, CCB-equivalent, etc.) | Form NB428 Part A |
| NB Tuition Amount | Schedule NB(S11) → NB428 line 58560 |
| NB Tax on split income | Form T1206 + NB428 line 42800 |
| NB Low-Income Tax Reduction | NB428 Part C, lines 47600–47700 |
| NB Seniors' Home Renovation Credit | Schedule NB(S12) → NB428 line 47900 |
| NB SBITC (individual) | NB-SBITC-1 attached; NB428 line 47900 schedule |
| NBHSTC | No form — auto-calculated by CRA from T1 |
| NB Film Tax Credit | T2 Schedule 305 (NB) with Part B certificate |
| NB R&D Tax Credit | T2 Schedule 360 |
Ava is a Moncton resident, NB resident on 31 Dec 2025, with employment income of $185,000 (federal + NB tax already provided for via payroll). On 15 March 2025 she subscribes for $200,000 of newly issued common shares in TideTech Inc., an NB-registered EBC with 18 employees building agritech sensors in Dieppe. TideTech holds a current SBITC registration certificate. Ava is unrelated to all TideTech founders and owns 4.2% of post-money common shares (below the 10% connected-investor threshold). TideTech issues Ava Form NB-SBITC-1 in June 2025 certifying $200,000 of eligible investment.
Eligible investment: $200,000 (under the $250,000 individual cap). Rate: 50%. NB SBITC: $200,000 × 50% = $100,000. Refundability: Refundable for individuals. Even though Ava's NB tax liability is roughly $14,800 for 2025, the full $100,000 is paid: $14,800 reduces NB tax to zero, and the remaining $85,200 is refunded when she files her 2025 T1.
Attach NB-SBITC-1 to her 2025 T1. Enter on NB428 Part C, line 47900 schedule for refundable provincial credits. Hold period: Ava must hold the TideTech shares until at least 15 March 2029. If she disposes before then to a non-arm's length party or TideTech redeems, the full $100,000 is clawed back via reassessment.
LITR: phased out at her income level — zero. NBHSTC: phased out at her income level — zero. Seniors' Home Renovation: not eligible (Ava is 41).
Refundable credit of $85,200 after offsetting NB tax.
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