How much funding can be received?

Funds up to 2000% of admissible expenses.

What is the deadline to apply?

The program is accepting continuous intake

Who are the financial supporters of the Labour-Sponsored Venture-Capital Tax Credit?

Labour-Sponsored Venture-Capital Tax Credit is funded by Government of Nova Scotia, Finance and Treasury Board (NB)

What are Labour-Sponsored Venture-Capital Tax Credit's eligibility criterias?

The company must be eligible to receive equity financing.

Labour-Sponsored Venture-Capital Tax Credit

Last Update: January 24, 2025

NS, Canada

Tax credit to support Nova Scotia SMEs

Labour-Sponsored Venture-Capital Tax Credit at a glance

Eligible Funding

Max. $2,000

Timeline

Closing date : June 24, 2024

Financing Type

Tax Credits

Eligible Industries

All industries

Grant Providers

Government of Nova Scotia
Finance and Treasury Board (NB)

Status

Closed

Overview of the Labour-Sponsored Venture-Capital Tax Credit program

Get a non-refundable personal tax credit of up to $2,000 when you invest in registered, labour-sponsored venture capital corporations.

Eligible projects & activities

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.

Examples of admissible projects:

$ 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

Eligibility criteria of the Labour-Sponsored Venture-Capital Tax Credit program

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.

Who is eligible?

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.

Eligible geographic areas

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.

How to apply to the Labour-Sponsored Venture-Capital Tax Credit program

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.

Locate a Registered LSVCC

Identify and connect with a labour-sponsored venture capital corporation (LSVCC) that is registered under the program.

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.

Obtain Proof of Investment

Receive documentation from the LSVCC confirming your investment, including necessary details about the shares purchased.

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.