Labour-sponsored funds tax credit – Personal income tax
- Federal: Lines 41300 and 41400
- Tax year: 2025| Prior tax years: 2024 and earlier
You may be able to claim the labour-sponsored funds tax credit if you purchased approved shares of the capital stock of a prescribed labour-sponsored venture capital corporation (LSVCC).
The labour-sponsored funds tax credit for a solely federally registered LSVCC was eliminated for the 2017 and subsequent tax years.
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Who can claim this credit
You may be able to claim the labour-sponsored funds tax credit if all of the following apply:
You became the first registered holder to acquire, or irrevocably subscribe to and pay for, an approved share of a prescribed LSVCC
First registered holder of an approved LSVCC share
You may purchase approved LSVCC shares directly. Approved shares may also be acquired through a registered retirement savings plan (RRSP), including a spousal or common-law partner RRSP.
If the first registered holder of the share is a spousal or common-law partner RRSP, either the RRSP contributor or the RRSP annuitant may claim the credit. The credit cannot be split between the contributor and the annuitant.
You acquired the share between January 1, 2025, and March 2, 2026, inclusive
Shares purchased in the first 60 days of the year
If you became the first registered holder of an approved share between January 1, 2025, and March 1, 2025, you can claim part of the credit on your 2024 return and any unused portion on your 2025 return.
If you purchased shares within the first 60 days of 2026, include on line 41300 only the cost of the shares for which you are claiming the credit on your 2025 return. You may choose to claim all or part of the cost on your 2026 return instead.
The share qualifies for the labour-sponsored funds tax credit under federal and provincial or territorial rules
Provincially or territorially registered LSVCC
If you bought shares after 2003 of a provincially or territorially registered LSVCC that is not federally registered, you can claim the federal labour-sponsored funds tax credit only if a provincial or territorial tax credit is also available for those shares.
How much you can claim
For 2025, the LSVCC tax credit limit is equal to 15% of the lesser of:
- $5,000
- the total of all amounts each of which is the net cost of the original acquisition of shares of a prescribed provincially registered LSVCC (net provincial acquisition)
You cannot claim more than $750.
How to claim
Steps
Calculate your net cost
Your net cost is the amount you paid for the shares, minus any government assistance received for those shares, other than federal, provincial, or territorial tax credits
Enter your net cost on line 41300
Enter the net cost of your contributions to a LSVCC on line 41300 of your income tax and benefit return.
Claim your credit on line 41400
Claim your labour-sponsored funds tax credit on line 41400 of your income tax and benefit return. To calculate your credit, read How much you can claim.
Claim your provincial or territorial credit (if applicable)
Your province or territory may offer a similar tax credit. Be sure to fill out the tax and credit form for your province or territory of residence.
If you were a resident of Quebec on December 31, 2025, see the guide for your provincial tax return for Quebec.