Venture Capital Tax Credit

The Venture Capital Tax Credit Program (VCTC) is designed to encourage investment in businesses which can provide the highest returns to the provincial economy, and to encourage growth in industries such as information technology, and clean and ocean technologies, among others.

The VCTC allows investors to qualify for a non-refundable tax credit equal to 30 percent of the amount invested in a Qualifying Venture Capital Fund. The maximum tax credit available to a qualifying investor is $75,000. As a non-refundable tax credit, the VCTC can be carried back 3 years and forward 7 years (but not prior to 2014).

To qualify for the credit, investors purchase shares in the fund, which then uses capital raised from investors to make equity investments in qualifying businesses. Decisions on investments will be made by the fund manager, Venture Newfoundland and Labrador Limited Partnership.

The Government of Newfoundland and Labrador does not guarantee any investment under the program.

Legislation Allows for Establishment of Venture Capital Tax Credit

Venture Capital Tax Credit Regulations under the Income Tax Act, 2000

FAQ’s

For more information regarding the 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
A1B 4J6
Tel: (709) 729-3166
Fax: (709) 729-0393