Atlantic Canadian businesses will benefit under the Nova Scotia Venture Capital Tax Credit’s new regulations.
“This tax credit is an incentive for individual and corporate investors to pool their resources in professionally managed funds to increase venture capital investments in Nova Scotia and Atlantic Canada,” said Minister of Finance and Treasury Board Karen Casey. “Our small and medium-sized businesses will benefit from more opportunities. We appreciate the input of the business community while regulations were developed.”
Qualifying funds will be able to access up to $20 million from eligible investors every year with a maximum tax credit of $3 million. Eligible businesses must meet conditions, including having their head office in Atlantic Canada.
The Venture Capital Equity Tax Credit will be extremely useful in increasing participation and unlocking untapped capital in the province to support high-growth technology companies. It will enable people to invest who wouldn’t otherwise, and help new Venture Capital funds, like ours, that reduce the risk for investors through diversification and professional fund management. This will serve as an entry point for new investors, likely also resulting in increased angel investment participation, as these investors become more familiar with the space. Rhiannon Davies, founding and managing partner, Sandpiper Ventures
- the Venture Capital Tax Credit provides incentive for private investors to invest in these funds in Nova Scotia
- the Venture Capital Tax Credit was announced in Budget 2019-20 and was legislated as part of Bill 139, an amendment to the Income Tax Act in 2019