Prince Edward Island equity tax credit

If you’re at least 19 years old, a resident of Prince Edward Island, and you purchased eligible shares from a community economic development business (CEDB) in Prince Edward Island during 2018 or within the first 60 days of 2019, you might be able to claim the non-refundable provincial equity tax credit.

You’ll receive a PE-ETC certificate from the CEDB you invested in to let you know how much you can claim. Your tax credit is calculated at 35% on a maximum investment of $20,000 per year. This means you can claim up to $7,000, including any unused credits from a past year. Remember, you need to hold your shares for at least 5 years to receive the full credit amount; otherwise you’ll be given a reduced credit.

If you don’t use the entire credit this year, you can carry forward the rest for up to 7 years or carry it back 3 years. Your notice of assessment (NOA) or reassessment will tell you if you have any unused amounts.

Where do I claim this?

Follow these steps in H&R Block's 2018 tax software:

Before you begin, make sure that you told us you lived in Prince Edward Island on December 31, 2018.

  1. Under the PREPARE tab, click the IN THIS SECTION icon.

  2. In the Investments box, click the Add This Topic button.

  3. Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:

    DIY18_PENSION_EN.png

  4. Under the INVESTMENT INCOME heading, select the checkbox labelled Prince Edward Island equity tax credit, then click Continue.

  5. When you arrive at the page for the Prince Edward Island equity tax credit, enter your information into the tax software.
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