Programme de crédit d'impôt relatif aux participations directes ### 📋 Eligible Entities - Individuals (Canadian residents) investing as shareholders - Corporations investing in small businesses - Investment groups making direct equity investments - Investors in small businesses located in Newfoundland and Labrador - Both resident and non-resident investors may qualify (subject to tax residency rules) ### 💰 Funding Details - Tax Credit Rate (Northeast Avalon Region): 20% of eligible investment - Tax Credit Rate (Other Regions): 35% of eligible investment - Format: Non-repayable tax credit (not a loan) - Application: Credits applied against provincial tax liability - Investment Structure: Direct equity participation/shareholding in eligible small businesses ### 🛠️ Approved Expenses - Business Startup Costs – establishing new small enterprises - Business Modernization – upgrading equipment, facilities, or operations - Expansion Projects – scaling existing small business operations - Direct equity investments in qualifying small businesses (capital contributions) ### ⚠️ Conditions & Milestones - Investment must be made directly as a shareholder in an eligible small business - Business must be located in Newfoundland and Labrador - Investment must meet minimum capital requirements (specific thresholds apply by program guidelines) - Business must be classified as a small business (employee and revenue thresholds apply) - Tax credit claimed in the year investment is made or subsequent years - Investors must hold shares for minimum period (typically 3+ years to avoid credit recapture) - Eligible business activities defined by program guidelines - Compliance with provincial corporate law and registration requirements