A Nova Scotian panel reviewing tax policy has recommended the province double the ceiling for investments eligible for the equity tax credit to $100,000, and pays faint homage to the idea of a regional investment tax credit.

The Tax and Regulatory Review, conducted by former Ontario cabinet minister Laurel Broten, is garnering headlines for its recommendations that the province shift the burden of taxation toward consumption and carbon use and away from income. It would introduce a carbon tax, broaden the Harmonized Sales Tax while lowering the income tax rate for corporations and top income earners.

But the panel also recommends changes to the equity tax credit – which grants individuals who pay taxes in Nova Scotia a credit worth 35 percent of an investment in an approved Nova Scotian business. The maximum investment eligibility now is $50,000, and the Broten panel recommends it be doubled to $100,000. By comparison, the maximum annual investment for comparable credits in New Brunswick is $250,000, and Newfoundland and Labrador has proposed a lifetime cap of $250,000.

“Consideration should be given to targeting the ETC to strategically designated high-growth sectors, such as information technology and clean technology, to be designated by regulation,” said the report. “As well, eligibility requirements must be re-examined to ensure that Nova Scotians are receiving best value from these tax credits.”

The report makes no mention of extending investment tax credits to individuals living outside the province – a practice that has been adopted successfully in such states as Arkansas and Minnesota. And though it makes no specific recommendation on regional credits, it speaks in favour of such a proposal.

“The Nova Scotia government should pursue a conversation with other provinces in the region about expansion of the ETC to a regional tax credit, such as the Atlantic Gateway Capital Credit, which has been championed by 4Front Atlantic, as part of a larger regional harmonization strategy,” said the report.