Equity Tax Credit for Community Economic Development Investment Funds
Equity Tax Credit for Community Economic Development Investment Funds help small businesses, co-operatives and community economic development initiatives with equity financing by offering a personal income tax credit to individuals investing in eligible businesses.
The Equity Tax Credit for Community Economic Development Investment Funds (CEDIFs) will continue to be available until 2 March 2032.
Investment details:
- for an investment made after 31 December 2009, the tax credit is calculated at 35% of investment made by an individual to a maximum annual investment of $50,000 (maximum annual credit of $17,500)
- an investment may be made within the calendar year or within 60 days of the taxation year end
- the tax credit isn’t refundable but may be carried forward for 7 years or carried back 3 years
Eligibility
An eligible business needs to apply to the Department of Finance and Treasury Board to obtain a Certificate of Registration before issuing shares to investors. This certificate makes the specified shares eligible for the tax credit.
The Certificate of Registration does not replace any approval that may be required from the Nova Scotia Securities Commission under the Nova Scotia Securities Act.
Applications by community economic development (CED) corporations or cooperatives require business plans containing the economic development strategy of the organization, the community it serves, the amount of capital to be raised by the issue, details of the type of shares to be issued and provisions for the issue of investment certificates.
How to apply
- Complete the application form.
- Check the application for details on all required supporting documents.
- Send your completed application and supporting documents by email.
Before you start
Make sure you have:
- reviewed detailed criteria in the Equity Tax Credit Community Economic Development Investment Fund Guidelines (PDF)
- financial statements for the preceding taxation year and a copy of the T2 income tax return (this is not required for first year corporations)
- copy of the articles of association or constitution of the corporation and memorandum of association
- notarized copy of the current shareholders register showing the dates of all transactions (purchases, sales and transfers)
- most recent draft of the Offering Document