Small business owners in Nova Scotia can now benefit from a 10 percent reduction in the province’s small business corporate income tax rate, effective Jan. 1.

The cut is the first reduction in the small business tax rate since 1992, and is part of the province’s new jobsHere strategy, which can be viewed at here. 

“Government understands that small business plays a critical role in creating good jobs and growing our economy,” said Graham Steele, finance minister. “That’s why they are a key focus of our jobsHere strategy and that’s why we are the first government to cut the small business tax rate since 1992.”

The reduction was first announced in the spring budget and will reduce the rate from five percent to four-and-a-half percent on the first $400,000 of taxable income.

“The 10 per cent reduction will return about half-a-million dollars to small businesses over the remainder of this fiscal year,” said Steele. “The savings for businesses will increase to $6 million next year and every year thereafter.”

About 10,000 to 12,000 incorporated businesses are eligible for the small business tax rate.