Tax Credits - Labour Sponsored Venture Capital Tax Credit
The New Brunswick Labour Sponsored Venture Capital (LSVC) tax credit is a personal non-refundable income tax credit provided for purchases of approved shares in prescribed LSVC corporations.
New Brunswick taxpayers who purchase approved shares of prescribed NB LSVC corporations are eligible for a non-refundable tax credit up to a maximum credit value per year. These shares must be held for eight years; otherwise, the tax credit amount must be re-paid.
The credit is non-refundable which means it can only be used to reduce provincial income tax owing.
The federal government offers a similar non-refundable personal income tax credit up to a yearly maximum for federally approved LSVC corporations.
For purposes of the NB tax credit, eligible LSVC corporations are required to be prescribed in the New Brunswick Regulation 2001-11 under the New Brunswick Income Tax Act.
Please note: LSVC shares may be eligible for RRSP deductions.
For additional information, see Tax Credits - Labour Sponsored Venture Capital Tax Credit in Related Links.