Administered by Government of Newfoundland & Labrador · Last verified: July 2026
A program that helps eligible Newfoundland and Labrador businesses raise capital by giving their investors a tax credit for buying newly issued common shares. Investors get 35% on activities outside the North East Avalon region or 20% within it. A single company can raise up to $3 million per offering, and shares must be held for at least five years.
You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.
Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.
Check my eligibilityNewfoundland and Labrador Direct Equity Tax Credit is generally open to incorporated businesses, in Newfoundland & Labrador. Confirm the full criteria on the official program page before applying.
The estimated value is 35% (outside North East Avalon) or 20% (within) credit to investors; up to $3M raised per company. The actual amount depends on your eligible costs, the program's budget, and approval.
Claimed on a return, so a missed year can usually be recovered by amending. How far back depends on whether you file personally or as a corporation; confirm the eligible years with your accountant.
1. Confirm the business and activities are eligible 2. Register the share offering under the program 3. Issue eligible common shares to investors 4. Provide investors with tax credit certificates
Lesser of 40% of eligible NL labour or 25% of production costs, up to $5M
TAX CREDIT40% of eligible production costs, up to $20M per project annually
TAX CREDIT10% of capital cost of eligible property (up to 40% refundable for CCPCs)