Lost in the recent controversy over budgets in Nova Scotia and New Brunswick is the fact that we’ve moved no closer to harmonizing or unifying investment tax credits in the region.

In fact, there are now greater differences in the provincial programs than ever before.

The recent budgets have created controversy over the film tax credit in Nova Scotia, over the fiscal picture in New Brunswick, and over education funding in both provinces.

The issue that the startup community had focused on in the lead up to the budgets was the tax credit given to equity investors in small businesses, especially in high growth businesses. For years, the community has been calling for these credits to apply to investors outside the provincial border – either to other Atlantic Canadians or to anyone regardless of where they live. Ideally, the community members would like a harmonized credit across the region.

None of the provinces has moved any closer to broadening the geographic application of these credits. Each of the provinces still grants the tax credit for individuals only to residents of that province.

The big change in these credits in this budget season came in New Brunswick, which increased the Small Business Investor Tax Credit rate for individuals from 30 per cent to 50 per cent. New Brunswick allows the tax credit to apply to investments of as much as $250,000, so the increase raises the maximum tax credit from $75,000 per year to $125,000.

The changes are very much in keeping with Premier Brian Gallant’s declaration that encouraging innovation is one of his government’s priorities.

In its budget last week, the Nova Scotia government made no change to its Equity Tax Credit, which grants a 35% credit on investment of up to $50,000. That means the annual maximum credit in Nova Scotia is $17,500.

Following the most recent budgets, New Brunswick entrepreneurs can benefit from eligible investments that are five times greater than those in Nova Scotia, and their investors can receive maximum credits seven times greater than those of Nova Scotia.

In Newfoundland and Labrador, the Direct Equity Tax Credit offers a credit of 20-35 percent (depending on where the company is based) on investments of up to $50,000.

While Atlantic Canada has maintained a patchwork of four provincial investment tax credits, they are also becoming more complicated. New Brunswick allows corporations to apply for the credit at a different rate than individuals. Newfoundland and Labrador has introduced the Venture Capital Tax Credit for corporations.  And P.E.I. allows larger eligible investments for manufacturers than for other businesses.