REGINA, March 22, 2016 /CNW/ - The Federal government has officially announced the reinstatement of the 15% LSVCC (Labour-Sponsored Venture Capital Corporation) tax credit effective for the 2016 tax year. The Federal Government issued the following statement in their 2016 budget, released today:
"RESTORING THE LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS TAX CREDIT
To facilitate access to venture capital for small and medium-sized businesses and support saving by the middle class, Budget 2016 proposes to restore the Labour-Sponsored Venture Capital Corporations (LSVCC) tax credit to 15 per cent for share purchases of provincially registered LSVCCs for 2016 and subsequent tax years. The measure will provide federal tax relief of about $815 million over the 2015-16 to 2020-21 period."
Previously the federal government had announced a phase out of the LSVCC tax credit starting in 2015, with the elimination of the federal credit for taxation years after 2016. With this announcement it is anticipated that a 15% tax credit will once again be available to individuals for the acquisition of shares of provincially registered LSVCCs on investments of up to $5,000 per annum.
The reinstatement of the LSVCC 15% tax credit is anticipated to take effect for the 2016 tax year.
SaskWorks Venture Fund is a Saskatchewan-based retail mutual fund that invests in small- and medium-sized private businesses. Established in 2001, SaskWorks has more than 27,750 shareholders and over $397 million in assets under management.
SOURCE SaskWorks Venture Fund Inc.
For further information: please contact SaskWorks' investor relations team at (306) 791-2113.