Ontario residents may qualify for an Ontario tax credit of up to 15 per cent of the cost of their investments in a Labour Sponsored Investment Fund (LSIF).
LSIFs provide capital to small and medium-sized Ontario businesses. LSIFs offer investment opportunities and tax credits to individual investors who purchase Class A shares of an LSIF.
Recent changes
The tax credits for investors will be phased out by the end of 2011, as follows:
- For investments made in 2009 and prior years the tax credit is 15 per cent
- For 2010, the tax credit is 10 per cent
- For 2011 the tax credit is 5 per cent
- For years after 2011, no tax credit will be available
For more information, please read:
- March 23, 2006 Information Bulletin
What are the benefits of the LSIF program?
The LSIF program provides benefits such as a tax credit for investors and potential returns on LSIF investments.
Investors may qualify for additional tax credits if they invest in an LSIF that qualifies as a Research Oriented Investment Fund.
Am I eligible?
Specific criteria must be met by the:
- registered LSIF
- investee businesses
- investments the corporation makes in investee businesses
Please refer to the Labour Sponsored Investment Fund Guide for further information on eligibility requirements.
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