)
Labour-Sponsored Venture-Capital Tax Credit
NS, Canada
Tax credit to support Nova Scotia SMEs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
grant_single|deadlines
- grant_single|closingDateJune 24, 2024
- grant_single|grantStatusClosed
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Nova Scotia
- Finance and Treasury Board (NB)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
Get a non-refundable personal tax credit of up to $2,000 when you invest in registered, labour-sponsored venture capital corporations.
grant_single_labels|projects
This program encourages investment in registered labour-sponsored venture capital corporations (LSVCCs) in Nova Scotia to stimulate economic growth. The projects eligible for funding must focus on mobilizing venture capital for small and medium-sized businesses and co-operatives.
- Issuance of newly created common voting shares by LSVCCs to raise capital.
- Investment of raised capital in eligible businesses through equity financing.
- Facilitation of economic development by backing businesses aimed at creating and maintaining employment.
- Providing financial support to businesses through subordinate debt obligations where applicable.
grant_single|admissibleProjectsExample
$ 2,000
Enhancement of sustainable fishing practices
$ 2,000
Initiative to support indigenous artisans
$ 2,000
Acquisition of cutting-edge machinery for manufacturing purposes
$ 2,000
Development of a community tech hub
$ 2,000
Creation of a local artists' marketplace
$ 2,000
Expansion of a local organic farming cooperative
grant_single_labels|admissibility
Eligibility for the Labour-Sponsored Venture-Capital Tax Credit focuses on the specific attributes and conditions pertaining to companies that seek investment through registered labour-sponsored venture capital corporations (LSVCCs).
- The company must be a small or medium-sized business or co-operative located in Nova Scotia.
- It must be deemed eligible to receive venture capital from LSVCCs for equity financing or subordinate debt obligations.
- The company must engage in activities that assist in creating and maintaining employment within the province.
- The corporation must issue newly issued common voting shares that are non-redeemable and non-convertible.
- The shares must not have eligibility for any other tax credit or deduction under the Income Tax Act, except for certain RRSP purposes or a federal LSVCC tax credit.
grant_eligibility_criteria|who_can_apply
Eligible investors for the Labour-Sponsored Venture-Capital Tax Credit are residents of Nova Scotia who are at least 19 years old and have valid reasons for making the investment beyond just obtaining the tax credit. However, the grant details do not specify additional evaluation or selection criteria for projects beyond investor eligibility and investment conditions.
grant_eligibility_criteria|zone
This tax credit program is intended for investors residing in a specific Canadian province. The geographical eligibility is limited to residents within this region, supporting local businesses and initiatives.
- Residents of Nova Scotia, Canada.
grant_single_labels|register
- Step 1: Become an Eligible Investor
- Ensure you are a resident of Nova Scotia over 19 years of age with a valid reason beyond just obtaining the tax credit for making the investment.
- Step 2: Locate a Registered LSVCC
- Identify and connect with a labour-sponsored venture capital corporation (LSVCC) that is registered under the program.
- Step 3: Invest in Eligible Shares
- Purchase newly issued common voting shares that are non-redeemable and non-convertible from the LSVCC.
- Ensure the purchased shares are not eligible for other tax credits or deductions, apart from RRSP purposes or a federal LSVCC tax credit.
- Step 4: Obtain Proof of Investment
- Receive documentation from the LSVCC confirming your investment, including necessary details about the shares purchased.
- Step 5: Claim Tax Credit
- File your income tax return and include the investment details to claim the tax credit.
- Ensure you have enough tax payable for the year to utilize the credit, as it is non-refundable and cannot be carried forward.
