Prince Edward Island Equity Tax Credit

What’s in this article?

 

What is this?

The Equity Tax Credit is a non-refundable tax credit which helps to reduce provincial tax payable. You can claim this credit if you purchased eligible shares from an approved Community Economic Development Business (CEDB) during the year or in the first 60 days of the following year. You will receive a Certificate PE-ETC from the approved CEDB indicating the amount of credit you can claim.

The maximum credit amount that you can claim is $7000, which includes any unused amounts from a previous year. Any credit amount that you cannot claim in the current tax year can be carried forward seven years or carried back three years. Refer to your Notice of Assessment (NOA) or Notice of Reassessment for any unused amounts you may have.

Note: Investments in an approved CEDB must be held for at least five years to earn the full value of the credit. Investments in CEDBs held less than five years will be subjected to a pro-rated reduction of the eligible tax credit.

 

Am I eligible?

You are eligible to claim this credit if:

  • You are a resident of Prince Edward Island as of December 31st;
  • You are 19 years of age or older; and
  • You received a Certificate PE-ETC from an approved Community Economic Development Business (CEBD)

 

Where do I claim this?

Important: Before you begin, make sure that you told us you lived in PRINCE EDWARD ISLAND 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:

Once you have confirmed your residence location, claim your Equity Tax Credit by following these steps:

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


3. Click the checkbox labelled I had investments.
4. Click the RRSPS & INVESTMENTS icon. You will find yourself here:


5. Under the INVESTMENT INCOME (OR LOSS) heading, click the checkbox labelled Equity Tax Credit.
6. Scroll to the bottom of the page and click Continue.

When you arrive at the page for Equity Tax Credit, enter your information into the tax software.

 

Where can I learn more?