New Brunswick Labour-Sponsored Venture Capital Fund Tax Credit

What’s in this article?

What is this?

The New Brunswick labour-sponsored venture capital fund tax credit is a non-refundable tax credit which helps reduce provincial income tax payable. It can be claimed for purchases of approved shares in a prescribed labour-sponsored venture capital (LSVC) corporation in the year and the first 60 days of the following year.

The credit is shown on a NB-LSVC-1 certificate issued by the LSVC corporation. The maximum you can claim is $2,000.  You must hold the shares for eight years, otherwise the tax credit amount must be repaid.

If you purchased registered approved New Brunswick labour-sponsored venture capital corporation shares, you can claim the federal sponsored funds tax credit for those shares only if a provincial income tax credit is also available to be claimed for them.

 

Am I eligible?

You are eligible to claim a credit for investment, if you are a resident of New Brunswick on December 31 and  purchased approved shares in a prescribed LSVC corporation in the tax year or in the first 60 days of the following year.  You must have also received a NB-LSVC-1 certificate(s) showing the credit. 

You can also claim the the tax credit if you have carryforward amounts that you did not claim on your prior year tax return. 

 

Where do I claim this?

Note: Before you begin, make sure you tell us that you lived in NEW BRUNSWICK on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

 

To claim the tax credit, continue to follow these steps:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:

  3. Click the checkbox labeled I had investments.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the RRSPS & INVESTMENTS tab. You will find yourself here:

  6. Under the INVESTMENT INCOME (OR LOSS) heading, select New Brunswick Labour-Sponsored Venture Capital Tax Credit.
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the New Brunswick Labour-Sponsored Venture Capital Tax Credit, enter your information into the tax software.

 

Where can I learn more?