The Newfoundland and Labrador direct equity tax credit is a non-refundable credit, available to you if you invested in small business industries like forestry or tourism during 2018, or in the first 60 days of 2019. If the government of Newfoundland and Labrador issued you an NL DETC-1 receipt, you might be eligible to claim this credit. You must be a resident of Newfoundland and Labrador and at least 19 years of age to claim this tax credit.
The credit is calculated at 20% for business activities within the North East Avalon and 35% for activities elsewhere in the province, for up to $50,000 per year. If you don’t need the entire credit, the unused amount can be carried forward 7 years or back 3 years. Keep in mind, the annual maximum amount of $50,000 includes any unused credit amounts from previous years.
Eligible business activities for this credit are:
- Research and development
- Forestry and agri-foods
- Manufacturing and processing
- Export/import replacement businesses
- Cultural industries
For more information on this tax credit, visit the Newfoundland and Labrador website.
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 that you lived in Newfoundland and Labrador on December 31, 2018.
Also keep in mind, in order for this credit to appear in H&R Block’s tax software, you must have told us that you’re at least 19 years old.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- In the Investments box, click the Add This Topic button.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Newfoundland and Labrador direct equity tax credit (T1272), and click Continue.
- When you arrive at the page for the Newfoundland and Labrador direct equity tax credit, enter your information into the tax software.