Important: The labour sponsored funds tax credit for solely federally-registered labour-sponsored venture capital corporation (LSVCC) shares was eliminated in 2017.
If you bought approved shares of the capital stock of a prescribed labour-sponsored venture capital corporation (LSVCC) from January 1, 2017 to March 1, 2018, and you were the first registered holder to acquire or irrevocably subscribe to and pay for these, you might be able to claim this credit.
If you became the first registered holder of an approved share from January 1, 2018 to March 1, 2018, you can claim any part of the credit on your 2017 tax return and claim the unused portion on your 2018 tax return.
Keep in mind, if you bought shares of a provincially-registered LSVCC you can claim the federal portion of the tax credit for these shares only if there is also a provincial or a territorial tax credit that can be claimed for them.
The maximum amount you can claim on your 2018 return is 15% of the lesser of:
- The total of your net cost of the original acquisition of shares of a prescribed provincially-registered LSVCC (net provincial acquisition)
Provincially-registered LSVCC shares
If you bought shares of a provincial or territorial registered LSVCC (that is not a federally registered LSVCC), you can claim a provincial tax credit for these shares. Click the applicable link below for more information on eligibility requirements and where to claim the credit in H&R Block’s 2018 tax software:
- Manitoba labour-sponsored venture capital tax credit
- New Brunswick labour-sponsored venture capital funds tax credit
- Nova Scotia labour-sponsored venture capital tax credit
- Québec labour-sponsored fund tax credit
- Saskatchewan labour-sponsored venture capital corporation tax credit
- Yukon labour-sponsored venture capital corporation tax credit
Where do I claim my federal LSVCC tax credit?
You can enter your unused federal tax credit amount from 2017 in the field labelled Provincial labour-sponsored funds tax credit on the All other deductions page under the OTHER icon on the PREPARE tab.