Tax credit receipts
Receipts will be issued by the Nova Scotia Department of Finance and must be submitted with the individual’s T1 Income Tax return for the tax year. Eligible Investors
The credit is available to residents of Nova Scotia who are over 19 years of age and who have valid reasons for making the investment. Each eligible share issue of must have at least 3 eligible investors.
An Investor Data Report Form
(xls) must be completed and submitted to Philip Hatheway
.Investor Hold Periods
For investments made:
Subsequent Tax Credits for Community Economic Development Investment Fund (CEDIFs)
- Prior to July 1, 2006, investors required to hold the investment for at least 4 years
- On or after July 1, 2006:
- Hold period for new issues is increased to 5 years
- If an investment is disposed within this 4- or 5-year period the investor may be required to repay the tax credits earned
Application for subsequent tax credit
- Additional 20 per cent credit
- Investors in CEDIFs may qualify for an additional 20 per cent credit for holding their shares for 5 years or more if the CEDIF meets certain conditions. The CEDIF must apply before the 10th anniversary of share purchases on behalf of investors.
- This additional credit requires investors to hold their shares for an additional 5 years (total of 10 years minimum) from the purchase date.
- Further 10 per cent credit
- CEDIF investors may also qualify for an additional 10 per cent credit for holding their shares for 10 years or more if the CEDIF meets certain conditions and applies before the 15th anniversary of the purchase of the shares on behalf of the investors.
- This additional credit requires investors to hold their shares for a further 5 years (total of 15 years minimum) from the purchase date.
(pdf)Datasheet for 20% credit
(xls)Datasheet for 10% credit
Disclaimer: Approval to issue shares under the program does not constitute a provincial government endorsement of the corporation or co-operative issuing the shares. The Province does not guarantee any investment. Investors assume all risk for their investments.