What Is a CEDC?
This is an opportunity for residents of New Brunswick to channel their investment dollars into their local economy. A Community Economic Development Corporation (CEDC) provides the basis for a financing model whereby investors could be eligible for a 50% tax credit as well as dividends on the investments they make.
We are currently in the process of working with the Financial and Consumer Services Commission of New Brunswick (FCNB) as well as local governing bodies to become a CEDC.
With Naveco Power, your investments stay 100% local.
Below is a navigation of a CEDC offering and the steps that are taken to reach the end result.
How can you invest, and what does it cost?
An eligible investor must be at least 19 years of age and be a resident of New Brunswick or corporation or trust that has a permanent establishment in New Brunswick.
The minimum investment per individual is $1000. The maximum amount an individual can invest is $250,000. If the investor is a trust or a corporation, the minimum amount is $50,000 and the maximum $500,000.
What are the benefits of investing in a CEDC?*
- Returns on Your Investment
CEDC investors may receive returns in the form of dividends on their investment either as cash distributions, upon the sale of shares.
- Tax Benefits
Besides investing in a local business and contributing to the growth of your community, investing in a CEDC may also carry tax benefits. The CEDC program is linked to the New Brunswick Small Business Investor Tax Credit (SBITC) program which offers a 50% personal income tax credit to investors on eligible investments made in CEDCs.
- RRSP Eligible
Your investment may also be eligible to be held in a self-directed RRSP (Registered Retirement Savings Plan.) This would provide the same tax-deferral benefits as any other RRSP contribution (within your annual contribution limit). To determine the eligibility of your self-directed RRSP, please contact Canada Revenue Agency.
To learn more about the CEDC model and to watch videos explaining the process, please visit the website below.
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