Equity Tax Eligibility for Investors

NOTE: A corporation cannot get both an Equity Tax Credit and an Innovation Equity Tax Credit at the same time. Corporations that apply for and receive a Certificate of Registration under the Equity Tax Credit program on or after January 1st, 2019 are NOT eligible corporations in the new Innovation Equity Tax Credit program.

Issuance of Tax ReceiptsCorporations/Co-operatives Registered Under the ETC Program:
In order for Tax Credit Receipts to be issued to eligible investors in a timely manner after the share issue, businesses registered under the ETC program must submit

• an updated copy of the shareholder register, and
• a copy of the Investor Data Report Form (xls).

Both must be submitted, via email as soon as possible after the lapse date on the offering to:

Elvira Dalag
Revenue Officer
Tel:  902.424.2808
Email:  novascotia.ca

By submitting this form electronically the submitter, who must be a director or officer of the corporation/co-operative, is certifying to the Nova Scotia Department of Finance and Treasury Board that the information contained in the Investor Data Report, Shareholder Register, and the e-mail is true and correct.

Community Economic Development Investment funds:
In order for Tax Credit Receipts to be issued to eligible investors in a timely manner after the share issue, businesses registered under the ETC program must submit

• an updated copy of the shareholder register,
• a copy of the Investor Data Report Form (xls).

Both must be submitted, via email, to Elvira Dalag and Donna Gouthro as soon as possible after the lapse date on the offering. The email must also declare the name and address of any person acting as an agent in connection with the trades and the compensation paid or to be paid to the agent, if nil please state so. By submitting this form electronically the submitter, who must be a director or officer of the CEDIF, is certifying to the Nova Scotia Securities Commission and the Nova Scotia Department of Finance and Treasury Board and Treasury Board that the information contained in the Investor Data Report, Shareholder Register, and the e-mail is true and correct.

In both cases above, Tax Credit Receipts will then be issued directly to the eligible investors from the Nova Scotia Department of Finance and Treasury Board and must be submitted with the individual’s T1 Income Tax Return.

Investor Hold Periods

For investments made:

• 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
  

• 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.Application for subsequent tax credit (pdf)
  Datasheet for 20% credit (xls)
  Datasheet for 10% credit (xls)
  
  

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.