Equity Tax Credit for Community Economic Development Investment Funds: investors
Information for investors in Equity Tax Credit for Community Economic Development Investment Funds, including tax receipts, investor hold periods and subsequent tax credits.
The Equity Tax Credit for Community Economic Development Investment Funds (CEDIFs) will continue to be available until 2 March 2032.
Issuance of tax receipts
For tax credit receipts to be issued to eligible investors in a timely manner after the share issue, businesses registered under the Equity Tax Credit Program must submit:
- updated copy of the shareholder register
- copy of the Investor Data Report Form (xlsx)
You need to submit both by email to the administrator and to the Nova Scotia Securities Commission as soon as possible after the lapse date on the offering. By submitting this form electronically the submitter, who must be a director or officer of the Community Economic Development Investment Fund (CEDIF), is certifying to the Nova Scotia Securities Commission and the Department of Finance and Treasury Board that the information contained in the Investor Data Report, Shareholder Register and the email is true and correct.
Tax credit receipts will then be issued directly to the eligible investors from the Department of Finance and Treasury Board. Investors may claim the credit by submitting the receipt with their T1 Income Tax Return.
Investor hold periods
Investors are required to hold their investment for at least 5 years. If an investment is disposed within 5 years, the investor may be required to repay the tax credits earned.
Subsequent tax credits
Additional 20% credit – Investors in Community Economic Development Investment Funds may qualify for an additional 20% credit for holding their shares for 5 years or more if the fund meets certain conditions. The fund 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% credit – Investors in Community Economic Development Investment Funds may also qualify for an additional 10% credit for holding their shares for 10 years or more if the fund 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.