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?

Must be a small or medium-sized business or co-operative in Nova Scotia Must be eligible to receive equity financing from a registered LSVCC

Labour-Sponsored Venture-Capital Tax Credit

Last Update: June 22, 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.

Financing terms and conditions

Maximum annual tax credit amount is $2,000 per individual investor.
The credit is not refundable and cannot be carried forward to future years.

Eligible projects & activities

Assisting eligible Nova Scotia businesses and co-operatives in securing equity financing through investments by individuals in registered labour-sponsored venture capital corporations (LSVCCs).
Supporting the creation and maintenance of employment in eligible businesses through LSVCC investments.

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

The company must be a small or medium-sized business or a co-operative based in Nova Scotia.
The business must seek equity financing by issuing newly issued common voting shares that are non-redeemable, non-convertible, and unrestricted in profit sharing or participation upon dissolution.
The shares must be issued through a registered labour-sponsored venture capital corporation (LSVCC) sponsored by a trade union.
The investment must not be eligible for any other tax credit or deduction under the Income Tax Act, except for RRSP deduction or the federal LSVCC tax credit.

Who is eligible?

Small and medium-sized businesses in Nova Scotia
Co-operatives in Nova Scotia

Eligible expenses

Investment in newly issued common voting shares of registered Labour-Sponsored Venture Capital Corporations (LSVCCs) that are non-redeemable, non-convertible, and unrestricted in profit sharing or participation upon dissolution.

Eligible geographic areas

Nova Scotia

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.

Additional information

Investors must retain their shares for a minimum of 8 years to avoid repayment of the tax credit.
The tax credit is not endorsed or guaranteed by the provincial government; investors assume all associated risks.
Shares purchased must not be eligible for other tax credits or deductions except for RRSP or federal LSVCC tax credits.
The tax credit cannot be carried forward or refunded; it can only be used in the year the investment is made if sufficient tax is payable.

Apply to this program