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Statutes of Newfoundland and Labrador 2014
AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2
(Assented to June 5, 2014)
Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:
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.