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ARCHIVED - 5014-N About Nunavut Credits

Table of Contents

• Nunavut risk capital investment tax credit program
• Labour-sponsored venture capital corporation tax credit
• Employee venture capital corporation, community endorsed venture capital corporation, and territorial business corporation direct investment tax credits

Use Form NU428, Nunavut Tax and Credits, to calculate your Nunavut tax credits. You will find information about the Nunavut cost-of-living and political contribution tax credits on the back of that form.

Nunavut risk capital investment tax credit program

You can choose from the following investment vehicles in Nunavut or the Northwest Territories:

• labour-sponsored venture capital corporations;
• employee venture capital corporations;
• community endorsed venture capital corporations; and
• direct investment in territorial business corporations.

As an eligible investor, you can claim a credit against Nunavut tax of up to $30,000, or 30% of investments made, to a maximum of $100,000 of eligible shares annually.

Labour-sponsored venture capital corporation tax credit

You can claim a credit equal to 15% of the first $5,000 and 30% of the next $95,000 you invested in eligible shares acquired in 2000 (and did not claim on your 1999 return) or in the first 60 days of 2001.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, in box 6393 on Form NU428. Calculate your credit on lines 16 and 17. Attach Form T2C(NWT) to your paper return or, if you are using NETFILE, keep it in case we ask to see it.

If you have invested in a labour-sponsored venture capital corporation, you are also eligible for a federal tax credit. For details, see lines 413 and 414 in the General Income Tax and Benefit Guide.

Employee venture capital corporation, community endorsed venture capital corporation, and territorial business corporation direct investment tax credits

You can claim a credit of up to 30% of investments made, to a maximum of $100,000 of amounts that you invested in 2000 (and did not claim on your 1999 return) or in the first 60 days of 2001.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, in box 6395 on Form NU428, and calculate your credit on line 18. Attach Form T2C(NWT) to your paper return or, if you are using NETFILE, keep it in case we ask to see it.

Unused credits

You can carry forward unused credits for seven years, or back three years. However, you cannot carry back credits to a year before 1998.

Any unused credit is shown on your most recent Notice of Assessment or Notice of Reassessment. Enter any unused credit from previous years on line 22 on Form NU428.

Use the chart below to calculate any unused credit available to carry back to previous years. Enter in box 6397 on Form NU428, any part of this amount you want to carry back to reduce your 1998 Northwest Territories tax. Enter in box 6396 any part you want to carry back to reduce your 1999 Nunavut tax.

Nunavut risk capital investment tax credit available for other years

Date modified:

2002-11-30