Newfoundland and Labrador (NL) Venture Capital Tax Credit

What’s in this article?

 

What is this?

The Newfoundland and Labrador venture capital tax credit is a non-refundable tax credit which helps reduce provincial tax payable. You can claim this credit if you purchased shares from a qualifying venture capital fund during the tax year or in the first 60 days of the following year.

The venture capital credit that you can claim will be reported on a Certificate NL VCTC. The maximum credit that can be claimed is $75,000; any unused amounts can be carried forward up to 7 years. Refer to your most recent Notice of Assessment (NOA) or Notice of Reassessment to determine any unused venture capital tax credit that have been carried forward from previous years.

 

Am I eligible?

You can claim the Newfoundland and Labrador venture capital tax credit if you purchased shares in a qualified venture capital fund during the tax year or in the first 60 days of the following year. You must have also received a NL VCTC Certificate showing you the amount that can be claimed.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, make sure you tell us that you lived in NEWFOUNDLAND AND LABRADOR 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 Newfoundland and Labrador venture capital 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. Select 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 Newfoundland and Labrador venture capital tax credit.
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for your Newfoundland and Labrador venture capital tax credit, enter your information into the tax software.

 

Where can I learn more?