Newfoundland and Labrador 2025 Budget

The Newfoundland and Labrador 2025 Budget introduces a series of measures aimed at fostering business growth, supporting innovation, and strengthening the local economy. Through a mix of tax credits, and government funding programs, and cost-saving initiatives, the provincial government is making strategic investments to help businesses scale, adapt, and thrive across various industries.

Whether you’re a manufacturer, digital media creator, green tech innovator, or small business owner, there are new opportunities in this year’s budget that may align with your goals.

Key Business Funding Highlights from the 2025–2026 Budget

Here are some of the most relevant business-focused initiatives in the latest provincial budget:

Newfoundland and Labrador Tariff Relief

A $35 million investment has been introduced to support economic development, with funds directed toward research, commercialization, and attracting investment. Additional relief includes:

• A continued small business tax rate of 2.5 percent
• An $800,000 increase in product compensation for Liquor Express retailers and local brewers
• A $10 million loan program aimed at helping locally owned restaurants with business development

Business Growth Program

Offered by the Department of Industry, Energy and Technology, this program provides nonrepayable contributions to help companies innovate, expand, and reach new markets.

• Covers up to 50 percent of eligible costs
• Up to $200,000 in funding over 24 months
• Development and commercialization projects may receive up to $750,000 over multiple years

Fuel Tax Relief Extension

The gasoline and diesel tax reduction of 7 cents per litre will remain in effect until March 31, 2026. With HST factored in, this measure results in an 8.05 cents per litre savings, helping to offset transportation costs for many businesses.

Support for Infrastructure Projects

The province continues to invite applications to the Municipal Capital Works (MCW) program. Eligible infrastructure projects include:

• Water and wastewater treatment
• Road improvements
• Recreational facilities

Applications are open to municipalities, local service districts, and Inuit Community Governments.

Updates to Tax Credits and Incentives for 2025

In addition to new funding, the Newfoundland and Labrador 2025 Budget reaffirms support for existing tax credits designed to encourage investment, innovation, and business expansion.

Green Technology Tax Credit (GTTC)

A 20% refundable tax credit is available for investments in green technology assets such as clean energy generation or energy-efficient equipment. This reduces the upfront costs of adopting sustainable technology.

Manufacturing and Processing Investment Tax Credit

Businesses investing in manufacturing or processing equipment can receive a 10 percent tax credit. Canadian-controlled private corporations can also benefit from a partial refund of up to 40 percent. This will help to modernize operations and improve productivity.

Interactive Digital Media (IDM) Tax Credit

This 40 percent refundable tax credit supports businesses developing digital media projects by covering eligible salaries and wages.

• Max $40,000 per employee per year
• Max $2 million per company annually

Direct Equity Tax Credit (DETC)

To encourage private investment in small businesses, investors can claim a provincial tax credit of:

• 35% for businesses located outside the Northeast Avalon region
• 20% for businesses within the region

Scientific Research and Experimental Development (SR&ED) Tax Credit

A 15 percent refundable provincial tax credit complements the federal SR&ED program, reducing R&D costs for eligible innovation-focused projects. This helps businesses mitigate the risks of experimentation and encourages technological advancement.

How to Access Funding and Support in Newfoundland and Labrador

With its 2025–2026 budget, the provincial government continues to support a strong and diversified economy. From tax relief and infrastructure funding to targeted programs for innovation and green technology, there are many ways for local businesses to benefit.

To make the most of these opportunities, businesses should assess their eligibility for available tax credits, grants, and loan programs, but navigating the funding landscape can be complex.

That’s where Ayming Canada comes in.

With over 35 years of expertise in government funding, tax credits, and SR&ED incentives, Ayming Canada helps businesses access the funding they deserve. Our experts take the stress out of identifying, applying for, and maximizing financial support so you can stay focused on growth and innovation.

Ready to find out what your business qualifies for?

Schedule a free consultation with Ayming Canada today and take the first step toward securing valuable funding and tax credits in 2025.