A CEDIF is a pool of capital, formed through the sale of shares (or units), to persons within a defined community, created to operate or invest in local business. It cannot be charitable, non-taxable, or not-for-profit, and must have at least six directors elected from their defined community.
How to Apply
To use the CEDIF exemption and qualify for the equity tax credit, a CEDIF corporation or co-operative, must file an Offering Document to be prepared by a CEDIF's board of directors and filed with the Department of Business. Upon satisfactory review, copies of the document are forwarded to the Nova Scotia Securities Commission and theDepartment of Finance for concurrent review. Approval of the equity tax credit lies with the Department of Finance, whereas the Securities Commission will provide a letter of non objection for the proposed exempt offering after any objections have been cleared.
Specific forms and documents are to be filed with the Offering Document before an application for a CEDIF can be considered complete.
Upon receiving a non-objection letter from the Director of Securities, a Form 2 - Report of Trade and Schedule A - List of Purchasers must be filed with the Director within thirty days of the initial closing date and within thirty days of each subsequent closing date.