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Statutes of Newfoundland and Labrador 2014



(Assented to June 5, 2014)


        1.   S.46.2 Added
Venture capital tax credit

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1
as amended

        1. The Income Tax Act, 2000 is amended by adding immediately after section 46.1 the following:

Venture capital tax credit

   46.2 (1) A qualifying investor, or a person acting on behalf of a qualifying investor, may apply to the minister for a tax credit in respect of a qualifying investment in a qualifying venture capital fund.

             (2)  The minister may give a tax credit to a qualifying investor who applies under subsection (1) or on whose behalf an application is made under subsection (1).

             (3)  A tax credit given under subsection (2) shall be calculated in the manner prescribed by the regulations.

             (4)  A tax credit shall be deducted against the tax which is otherwise payable under this Act.

             (5)  The Lieutenant-Governor in Council may make regulations

             (a)  establishing the criteria for determining who is a qualifying investor, what is a qualifying venture capital fund and what investments are qualifying investments;

             (b)  respecting the issuance of and the grounds for revocation of certificates of qualification to qualifying venture capital funds;

             (c)  limiting the amounts which a qualifying venture capital fund may raise through the use of credits;

             (d)  prescribing how funds raised may be used by a qualifying venture capital fund;

             (e)  respecting the wind-up and dissolution of a qualifying venture capital fund;

             (f)  respecting the manner of calculating the amount of a tax credit that may be paid to a qualifying investor;

             (g)  setting limits on the amounts of qualifying investments;

             (h)  respecting the carrying forward or back of a credit;

              (i)  respecting the holding period for a qualifying investment;

              (j)  prescribing penalties for failure to comply with the regulations; and

             (k)  generally to give effect to the purpose of this section.

             (6)  This section does not apply to labour-sponsored venture capital tax credits referred to in section 45.1.