Frequently Asked Questions

Frequently Asked Questions



What is the Capital Investment Incentive?
The Capital Investment Incentive is an incentive being offered under the Productivity Investment Program. On a per-application basis, the incentive can contribute up to 20% toward the cost of technologically-advanced machinery, clean technology, equipment, software and hardware with preference given to exporters in qualified industries.

The CII is limited to corporations in the following industries:
  • Advanced manufacturing and processing
  • Development of non-traditional sources of energy
  • Life-sciences
  • Aerospace and defence
  • Information and communication technology (ICT)
  • Ocean technology
  • Professional, Scientific and Technical Services excluding the following: Legal Services; Accounting, Tax Preparation, Bookkeeping and Payroll Services; Advertising and Related Services; Photographic Services; Veterinary Services; Translation and Interpretation Services
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What companies are eligible?
The Capital Investment Incentive gives preference to companies currently exporting outside of Nova Scotia. Consideration will be given to non-exporting companies if a compelling case can be presented.

In limited circumstances, activities including construction, farming, fishing, mining, logging, and petroleum and natural gas operations may be eligible where significant productivity enhancements can be demonstrated from the capital investment. For purposes of CII, companies primarily involved in wholesale, retail, and accommodations, food services and electric power generation, transmission and distribution are excluded.
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What types of purchases are eligible?
The purchases must be deemed 'qualified property' to be eligible.
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What constitutes 'qualified property'?
'Qualified property' includes advanced machinery, equipment, clean technology and software and hardware. Important Notes: The property must not have been used or leased before it was acquired and it has to be operational in Nova Scotia. Used equipment deemed eligible (by prior written consent), must not have already generated a Capital Investment Incentive or a Manufacturing and Processing Investment Credit.
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How can companies determine if the equipment purchase they want to make is considered 'qualified property'?
Companies should submit an application to the Department of Economic and Rural Development and Tourism prior to making any purchases. The department will evaluate the application and determine if the company is eligible to claim the Capital Investment Incentive.
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When can companies apply for the Capital Investment Incentive?
Applications are being accepted now. The incentive will be disbursed on a 'first come, first serve' basis and will be available until the fund is exhausted.
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How is the application evaluated?
Applications are evaluated based on the following criteria:
  • Potential for long-term viability;
  • Qualifications and track records of managers;
  • Cost benefit to the province;
  • Availability of program funds;
  • Level technological advancement;
  • Degree of productivity enhancements to the company;
  • Environmental impact;
  • Payback period for the investment; and
  • Level of assistance from other government programs offered or available
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How is the applicant notified if the application is approved or denied?
When received, the application will be assessed by the Investment division of the Department of Economic and Rural Development and Tourism. If the necessary conditions are found to apply, a Letter of Offer (notice of assessment) will be issued.

The Letter of Offer will provide the following information:
  • The name of the company to which the contribution will be issued and amount of maximum contribution;
  • A description of the 'qualified 'property' to which the Investment Contribution applies; and
  • other information specific to the particular application, as required.
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What happens after the company receives the Letter of Offer?
The company has six months following the issuance of the Letter of Offer to submit a claim for reimbursement supported by invoices and proof of payment (see below for clarification). A reimbursement of 20% of the cost, up to a maximum of $1 million, will be issued. Acquisitions less than $25,000 will not be considered.

Proof of payment includes invoices noting qualified equipment purchases, or a bank statement noting wire funds transfers or canceled cheques.

For additional information on the Capital Investment Incentive, please e-mail pip@gov.ns.ca, or call 902 424-8822.
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