Type of Program:
The Innovation Equity Tax Credit (Innovation ETC) is a non-refundable personal and corporate income tax credit available to eligible investors who invest in an approved corporation. The credit is meant to encourage investors to make equity capital investments in eligible Nova Scotia small and medium corporations engaged in innovative activities.
Comments on Funding:
The credit is equal to 35% of eligible investments made in approved corporations, up to $ 87,500.
It increases to 45% for eligible investments made in approved corporations in eligible classifications within the oceans technology and life sciences sectors, up to $ 112,500.
The maximum annual investment amount is $250,000.
For corporations, the credit is equal to 15% of the eligible investment. The minimum investment amount is $50,000 and the maximum annual investment amount is $500,000.
When It Ends:
The applicant must:
An eligible investor is an individual who is a resident of Nova Scotia and at least 19 years of age or a taxable Canadian corporation which is registered to carry on business in Nova Scotia, has its head office in Nova Scotia, and is not a qualifying venture capital fund under section 27B of the Income Tax Act (Nova Scotia).
Applicant must apply for a Certificate of Registration before accepting investments from eligible investors by submitting the completed application packages via email to the Innovation ETC Administrator.
Applicant must Issue eligible investments to eligible investors through a specified issue.
Applicant must apply for Tax Credit Certificates on behalf of all eligible investors who made eligible investments during the time the corporation was registered under the program. The application for Tax Credit Certificates must be received by the department within 6 months of the expiry date on the corporation's Certificate of Registration.
Applicant must submit an annual return to the Innovation ETC administrator for each of the 4 years after the expiry date on the certificate of registration.
To apply for the Certificate of Registration the applicant must submit:
To apply for the Tax Credit Certificates the applicant must submit:
Other Things to Note:
It's important to note that the deadline for applying for the Nova Scotia Innovation Equity Tax Credit can vary depending on the specific circumstances of your investment and the corporation you invested in. Therefore, it's recommended that you seek professional advice or consult the official guidelines from the Nova Scotia Department of Finance for more detailed information.