Venture Capital Tax Credit

By mmuise

The Venture Capital Tax Credit Program (VCTC) is a provincial non-refundable tax credit available for both individual and corporate investors, but not trusts, equal to 30% of the amount invested in the qualifying venture capital fund (QVCF) through the purchase of limited partnership units or newly issued shares.

Comments on Funding:

Funding is a non-refundable tax credit equal to 30% 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).

Deadline: Rolling deadline

Applicants must:

  • be individual or corporate investors that purchase shares in the fund, which then uses capital raised from investors to make equity investments in qualifying businesses (business activities include intellectual property, information technology, clean, ocean and marine technologies, life sciences and new media sectors and manufacturing and processing of value-added goods for export),
  • hold the shares for a minimum 5 years or the tax credit has to be repaid in proportion to the amount of time the shares were held.
Application Steps:

No specific steps have been identified.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

Decisions on investments will be made by the fund manager, Venture Newfoundland and Labrador Limited Partnership.
The Province of Newfoundland and Labrador in no way guarantees the value of any shares issued by a qualifying business under the VCTC program nor does it in any way express an opinion as to the financial condition of the issuing company or the merits of any investments made under the program.

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