The Labour-sponsored Venture Capital Program encourages Saskatchewan individuals to invest in funds or pools of capital called Labour-sponsored Venture Capital Corporations (LSVCC). These corporations invest in Saskatchewan-based small and medium sized business.
Individuals investing in the shares of a provincially-registered LSVCC will be eligible for both a provincial tax credit equal to 20 per cent of the cost of their investment and a 15 per cent federal tax credit on the first $5,000 invested in each year. Individuals investing in the shares of a qualified federally-registered LSVCC will also be eligible for a provincial tax credit equal to 20 per cent of the cost of their investment on the first $5,000 invested each year. Total Credits for investment in both types of plans in a year cannot exceed $1,000.
The 2017-18 Budget announced that beginning for the 2018 taxation year, the LSVC Tax Credit rate is reduced from 20 per cent to 15 per cent.