Nova Scotia - Labour Sponsored Venture Capital Tax Credit

What’s in this article?

 

What is this?

The Nova Scotia Labour-sponsored venture capital tax credit is a non-refundable tax credit which helps reduce provincial tax payable. It can be claimed for purchases of eligible shares in a prescribed labour-sponsored venture capital (LSVC) corporation made during the tax year and the first 60 days of the following year.

The credit is shown on a NSLSV form 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. Also, if you do not have sufficient tax payable in the year the credit will be lost as it cannot be carried forward to future years.

If an RRSP for a spouse or common-law partner became the first registered holder of the share either the RRSP contributor or the annuitant may claim the credit for that share.

 

Am I eligible?

You are eligible to claim a credit for investment if you meet all of the following criteria:

  • You are a resident of Nova Scotia;
  • You are at least 19 years of age;
  • You purchased approved shares in a prescribed LSVC corporation in the tax year or in the first 60 days of the following year; and
  • You have received an NSLSV form showing the credit

 

Where do I claim this?

Important: Before you begin, make sure that you tell us that you lived in NOVA SCOTIA 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 on the YOUR YEAR IN REVIEW icon. You will find yourself here:


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


6. Under the INVESTMENT INCOME (OR LOSS) heading, select the checkbox labelled Nova Scotia 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 Nova Scotia Labour-Sponsored Venture Capital Tax Credit, enter your information into the tax software.

 

Where can I learn more?