5012-N Information Sheet About Northwest Territories Tax Credits

Calculate your Northwest Territories tax credits on Form T1C (N.W.T.), Northwest Territories Tax and Credits. See the back of that form for information
about the Northwest Territories cost-of-living and political contribution tax credits.

Northwest Territories risk capital investment tax credit program

You can choose from the following investment vehicles in the Northwest Territories and Nunavut:

• labour-sponsored venture capital corporations;
• employee venture capital corporations;
• community endorsed venture capital corporations; and
• direct investment in territorial business corporations.

As an eligible investor, you will receive a credit against Northwest Territories tax of up to $30,000, or 30% of investments made, to a maximum of $100,000 of eligible shares annually.

Labour-sponsored venture capital corporation tax credit

You can claim a credit equal to 15% of the first $5,000 and 30% of the next $95,000 you invested in eligible shares acquired in 1999, or in the first 60 days of 2000. You can claim a credit for amounts invested in the first 60 days of 2000 on your 1999 or 2000 return, or you can divide the credit between these two returns.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, in box 6241 on Form T1C (N.W.T.). Calculate your credit on lines 16 and 17. Attach Form T2C(NWT) to your return or, if you are using EFILE, show it to your EFILE service provider.

If you have invested in a labour-sponsored venture capital corporation, you are also eligible for a federal tax credit. For details, see lines 413 and 414 in the General Income Tax and Benefit Guide.

Employee venture capital corporation, community endorsed venture capital corporation, and territorial business corporation direct investment tax credits

You can claim a credit of up to 30% of investments made, to a maximum of $100,000 of amounts that you invested in 1999, or in the first 60 days of 2000. You can claim a credit for amounts invested in the first 60 days of 2000 on your 1999 or 2000 return, or you can divide the credit between these two returns.

Enter the cost of the shares from Form T2C(NWT), Risk Capital Investment Tax Credit, in box 6243 on Form T1C (N.W.T.), and calculate your credit on line 18. Attach Form T2C(NWT) to your return or, if you are using EFILE, show it to your EFILE service provider.

Note

The amount of risk capital investment tax credits is subject to certain limitations. Complete the calculation on line 20 of Form T1C (N.W.T.).

Unused credits

You can carry forward unused credits for seven years, or back three years. However, you cannot carry back credits to a year before 1998.

Any unused credit is shown on your most recent Notice of Assessment or Notice of Reassessment. Enter any unused credit from previous years on line 22 on Form T1C (N.W.T.).

Use the chart below to calculate any unused credit available to carry back to previous years. Enter, in box 6244 on Form T1C (N.W.T.), any part of this amount you want to carry back to reduce your 1998 Northwest Territories tax.