On April 18, 2023, the Governor in Council of Nova Scotia established the Tax Refund for Skilled Trades and Occupations Regulations, N.S. Reg. 69/2023. These regulations, enacted under the Income Tax Act of Nova Scotia, aim to offer financial relief to individuals engaged in specific skilled trades and film occupations within the province. Effective from January 1, 2022, the regulations are designed to promote workforce development by incentivizing employment and training in these sectors.

The primary objective of these regulations is to refund a portion of the income tax paid by eligible individuals working in designated trades or film-related jobs. To qualify for the refund, applicants must be Nova Scotia residents under 30 years of age, have filed a Nova Scotia income tax return, and be employed in an eligible trade or film occupation. Eligible trades are those recognized under the Apprenticeship and Trades Qualifications Act, while eligible film occupations involve the production of certain types of live-action films or videos.

Eligible income for the refund must be earned in Nova Scotia and reported on tax returns for the period between January 1, 2022, and January 1, 2027. It can be earned through employment with an eligible employer or through self-employment. The refund amount is determined based on the proportion of eligible income relative to total income, and cannot exceed the provincial tax payable. Any discrepancies or non-compliance detected during the application process may lead to a denial or adjustment of the refund by the Minister of Finance and Treasury Board.

Applications for the tax refund must be submitted within 18 months following the end of the taxation year and require comprehensive documentation, including personal details, tax return information, and proof of eligible income. The application process is designed to ensure precision and adherence to the regulations. Refunds are administered by the Minister of Finance and Treasury Board and can be issued via cheque, direct deposit, or other approved methods, provided the amount is $2 or more. In cases where an incorrect refund is issued, the recipient must repay any excess amount received.

To enforce and administer the regulations, the Minister of Finance and Treasury Board may share information with various government entities and conduct audits to ensure compliance. Records related to the refund must be retained for at least seven years. In cases of undue hardship, the Minister may accept a reduced repayment amount, and if an eligible individual passes away before receiving their refund, it will be allocated to their estate.

These regulations reflect Nova Scotia’s commitment to supporting the skilled trades and film industries by providing targeted financial relief to young workers, thereby encouraging greater participation and training in these critical fields.

Source: Nova Scotia (69/2023), May 3, 2023