The Labour-Sponsored Venture Capital Tax Credit was a personal non-refundable income tax credit provided for purchases of approved shares in prescribed labour-sponsored venture capital corporations.
Newfoundland and Labrador (NL) taxpayers who purchased approved shares of prescribed NL labour-sponsored venture capital corporations were eligible for a non-refundable tax credit up to a maximum credit value per year. These shares had to be held for eight years from the date of purchase; otherwise, the tax credit amount had to be repaid.
This program has expired, as eligible shares were newly issued voting common shares of the labour-sponsored venture capital corporation issued on or before December 31, 2014.
The province of Newfoundland and Labrador passed the Labour-Sponsored Venture Capital Tax Credit Act and the Labour-Sponsored Venture Capital Tax Credit Regulations in December 2004.
In addition, the 2009 Newfoundland and Labrador Budget announced two changes:
- The tax credit rate increased from 15% to 20% of the amount paid for labour-sponsored venture capital corporation shares, effective April 1, 2009
- The maximum annual eligible investment per investor increased from $5,000 to $10,000, effective April 1, 2009.
For more information regarding the Labour-Sponsored Venture Capital Tax Credit, please contact:
Tax and Fiscal Analysis Division
Department of Finance
5 Mews Place
P.O. Box 8700
St. John’s, NL
Tel: (709) 729-3166
Fax: (709) 729-0393