NEWS RELEASE – BioNova, Grant Thornton and Cox & Palmer Propose Updates to N.S. Tax Credit to Boost Investment in Startups

By November 6, 2019News

NEWS RELEASE
FOR IMMEDIATE RELEASE

BioNova, Grant Thornton and Cox & Palmer Propose Updates to N.S. Tax Credit to Boost Investment in Startups

November 6, 2019 – Halifax, Nova Scotia – BioNovaGrant Thornton and Cox & Palmer

BioNova, the organization leading the economic growth of the Health and Life Sciences sector in Nova Scotia in collaboration with Grant Thornton and Cox & Palmer have announced the launch of a report to advance the Innovation Equity Tax Credit (IETC)  to better serve the interests of local businesses, the investment community, and the province’s economic development objectives. The announcement was made at BioNova’s 18th annual BioPort Atlantic conference, the largest health and life sciences conference east of Montreal.

This is the second time that BioNova and industry partners have provided recommendations to the province to evolve the tax credit, many of which were adopted with the launch of the new and improved IETC back in January. This has led to welcomed changes for many companies in Nova Scotia, as the attraction of capital has been a long-standing issue for emerging businesses.

“Great strides have been made and we believe there are still opportunities available to further improve and refine the IETC that will have a long-term positive impact on our economy and for the health and life sciences sector,” said Scott Moffitt, Executive Director of BioNova.

There are thirteen new recommendations listed in the report including an update which will allow directors, founders, and other investors with a vested interest in the company to benefit from the tax credits where they are currently excluded. The report also recommends providing early stage companies an opportunity to pivot their business plan if it will increase their chances of success while still being eligible for the IETC.

BioNova advocates on behalf of the sector for initiatives that are important to attract investment to the province. The IETC encourages investors to make equity capital investments in eligible Nova Scotian small and medium corporations, who are engaged in innovative activities that contribute to inclusive economic growth and increase investment in innovation.

Quotes
“The Innovation Equity Tax Credit changes that were announced in January of 2019 and referenced again in the provincial budget for 2019/20 made a significant impact on the amount of local funds raised in our most recent offering. We were encouraged to see local investors benefit from the new changes. We truly believe that these are the types of significant improvements that are needed to ensure the success of technology-based businesses like ours, so we look forward to this trend continuing.”

– Peter Hickey, Co-founder and Executive Director, IR Scientific

“We’re hoping that our efforts to improve the business climate in Nova Scotia for innovation-driven entrepreneurship by doing things differently will continue to support economic growth in the province.”

Gerry Lacroix, Partner, Grant Thornton

View the full report “Continuing the Advantage: INNOVATION EQUITY TAX CREDITS and Stimulating Innovative Companies” here

About BioNova:
BioNova leads the economic development of Nova Scotia’s growing health and life sciences sector. Since 1993, BioNova has been accelerating the growth of its member companies to commercialize life-changing research to improve healthcare, provide healthier food, and develop sustainable solutions. BioNova champions the sector’s cluster of world-class research facilities, incubator programs, and companies who, together, bring investment and jobs to Nova Scotia.

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For further information, media may contact:
Shana Cristoferi
Marketing Manager, BioNova
902-421-5705
scristoferi@bionova.ca

Click here to download the BioPort and BioNova Logos.