Equity Tax Credit Act Extension

A 10-year extension to the Equity Tax Credit Act will keep investment dollars in Nova Scotia, helping local businesses thrive, increase productivity and compete globally.

Legislation to extend the Equity Tax Credit Act was introduced today, Nov. 24.

"Through jobsHere, the plan to grow our economy, we're extending the successful initiatives supported by the Equity Tax Credit Act, which help small companies get the capital they need to compete," said Economic and Rural Development and Toursism Minister Percy Paris. "With the passing of this legislation, successful investment will continue to contribute to economic growth in our province for at least 10 years."

The three key initiatives under the act are Equity Tax Credits, Community Economic Development Investment Funds, and Labour Sponsored Venture Capital Corporations tax credits.

Since its introduction, the tax credits have helped 729 businesses, co-operatives and community economic development initiatives access equity financing from Nova Scotians who wish to invest in local organizations.

Through the Equity Tax Credit, investors get a tax credit of 35 per cent of their investment in eligible corporations. Average annual investments are more than $11 million.

"Our company has greatly benefitted from the Community Economic Development Investment Funds program," said Angela Doyle of Unique Solutions. "We have raised about $1.9 million from about 150 local investors through our fund offering, which has helped us continue to innovate and increase productivity."

More than 4,500 Nova Scotians have invested $42 million in more than 48 Community Economic Development Investment Funds. A Community Economic Development Investment Fund is a pool of capital raised through the sale of shares invested in local businesses.

Labour Sponsored Venture Capital Corporations tax credits help create jobs by making capital available to small and medium-sized businesses. On a maximum investment of $20,000, 20 per cent credit is received.

"The success of this legislation shows that Nova Scotians are supporting community-based businesses with their own money," said Mr. Paris. "The province's economic growth is all of our responsibility and we will continue to do all we can to support local investments."