Effective January 1 2010, the Nova Scotia government announced that they are increasing the Equity Tax Credit from 30% up to 35%.

With the rate hike, the Equity Tax Credit now gives you back 35% of your investment in qualifying small businesses, located in Nova Scotia.  The maximum rebate you can now receive per year is $6,125, on an investment of $17,500.

What kind of businesses qualify for the Equity Tax Credit?  Well, they must be an active company, located in Nova Scotia, with sales and assets of less than $25 million.  And they have to apply to the Nova Scotia government, in advance, each year before their share offering.  The Equity Tax Credit is a very popular credit with co-operatives who are looking for investors.

If you are an individual looking for more information, go here:  http://www.gov.ns.ca/finance/en/home/taxation/personalincometax/equitytaxcredit/equitytaxeligibilityforinvestors.aspx

And if you are a business interested in applying for eligibility, go here:  http://www.gov.ns.ca/finance/en/home/taxation/personalincometax/equitytaxcredit/equitytaxeligibilityforbusinesses.aspx

Filed under: Business tax, Personal Tax by David Boese No Comments »