If you’re at least 19 years old, a resident of Prince Edward Island, and you purchased eligible shares from a community economic development business (CEDB) in Prince Edward Island during 2017 or within the first 60 days of 2018, you might be able to claim the non-refundable provincial equity tax credit.
You’ll receive a PE-ETC certificate from the CEDB you invested in to let you know how much you can claim. Your tax credit is calculated at 35% on a maximum investment of $20,000 per year. This means you can claim up to $7,000, including any unused credits from a past year. Remember, you need to hold your shares for at least 5 years, or else you’ll be given a reduced credit.
If you don’t use the entire credit this year, you can carry forward the rest for up to 7 years, or carry it back 3 years. Your notice of assessment (NOA) or reassessment will tell you if you have any unused amounts.
Where do I claim this?
Follow these steps in H&R Block's 2017 tax software:
Before you begin, make sure that you told us you lived in Prince Edward Island on December 31, 2017.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- Under Investments (shares, securities, property, tax shelters, etc.) you bought or sold in 2017, click the Add This button.
- Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:
- Under the INVESTMENT INCOME heading, select the checkbox labelled Prince Edward Island equity tax credit, then click Continue.
- When you arrive at the page for the Prince Edward Island equity tax credit, enter your information into the tax software.