Saskatchewan residents can invest in small and medium-sized Saskatchewan businesses by purchasing shares in funds called Labour-sponsored Venture Capital Corporations (LSVCC). These investments help Saskatchewan companies grow, and they also allow you to earn a tax credit. The tax credit is 35% (20%* provincial and 15% federal) on the first $5,000 you invest each year. You must hold your money in the LSVCC for a minimum of eight years or you will be required to repay the tax credits. These investments are also Registered Retirement Savings Plan (RRSP) eligible.
*For the 2018 and subsequent tax years, the provincial tax credit will be reduced to 17.5%.
Two investment options are available:
- Pool Funds are open to any Saskatchewan resident who wants to invest in a broad base of Saskatchewan sectors and businesses. In turn, Saskatchewan businesses can apply to access this venture capital to assist with startup or expansion. Pool funds available for investment include the Golden Opportunities Fund Inc. and SaskWorks Venture Fund Inc.
- Employee Investment Funds allow employees to invest in the company where they work and assist employers in establishing an employee ownership program. Employers and employees work together to establish a fund and make investments.
This information is intended to introduce you to the program and is not intended as a substitute for the Labour-sponsored Venture Capital Corporations Act or the Labour-sponsored Venture Capital Corporations Regulations.