If you’re an individual, beneficiary of a trust, or member of a partnership with a business located in Newfoundland and Labrador, and you incurred expenses for scientific research and experimental development (SR&ED) activities conducted in the province during the year, you might be able to claim the Newfoundland and Labrador research and development tax credit.
This refundable tax credit allows you to claim 15% of your research and development expenses, as long as these expenses are eligible for federal SR&ED tax credits. Qualified expenses can include:
- SR&ED salary and wages
- Materials used in the SR&ED process (such as raw materials or substances that are physical and tangible)
- Contract Expenditures for SR&ED Performed on Behalf of a Claimant
- SR&ED Lease Expenditures (if the expenditure was made before 2014)
- SR&ED overhead and other expenditures (traditional method only)
- Third-party payments
- SR&ED capital expenditures (for property acquired and available for use before 2014)
Note: You can’t claim amounts that have already been reduced by another form of government or non-government assistance (besides HST and GST tax credits).
Where do I claim this?
Follow these steps in H&R Block’s 2018 tax software:
Before you begin, make sure that you told us that you lived in Newfoundland and Labrador on December 31, 2018.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- In the Self-employment income and expenses box, click the Add This Topic button.
- Click the EMPLOYMENT icon. You’ll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Newfoundland and Labrador research and development tax credit for individuals (T1129) then click Continue.
- When you arrive at the page for the Newfoundland and Labrador research and development tax credit for individuals, enter your information into the tax software.