Sask. adjusts tax credit for labour-sponsored venture funds

Sask. adjusts tax credit for labour-sponsored venture funds

The provincial government is scaling back some of its proposed changes to labour-sponsored venture funds in Saskatchewan.

On budget day, the government said it was reducing the tax credit rate for investors in such funds from 20 to 15 per cent.

Today, Economy Minister Jeremy Harrison said consultation with venture fund managers had produced a compromise of 17.5 per cent for a new tax credit amount.

The change reduces the maximum individual provincial tax credit which can be claimed each year from $1,000 to $875.

The government will cap the program at $70 million, rather than $80 million, which reduces the annual fund cap to $35 million for each of the two funds operating in Saskatchewan.

Labour-sponsored investment funds are designed to stimulate investment in small and medium-sized businesses.

In a news release, the president of SaskWorks Venture Fund, Randy Beattie, said, "While any cuts are unfortunate, these changes are structured in such a way to allow SaskWorks Venture Fund to continue its successful track record of raising capital in the province and profitably investing that capital back into high quality Saskatchewan-based businesses for years to come."