Like an investment in the BCA Investment Co-operative, funds invested in the new venture capital company earn investors a 35 per cent tax credit under the Community Economic Development Investment Fund."A big thing is that this is available to people who shift their RRSPs to us and get a 35 per cent tax credit," MacLeod added. "For most people, RRSPs don't earn much."
He also said Nova Scotia is the only province that allows RRSP transfers without penalty for investment in community economic development funds.
The interest on money borrowed to invest in the fund is also tax deductible.
MacLeod said the venture capital fund is interested in a green-energy biomass furnace that's in the research-and-development phase, and would be used on-farm to burn manure. If it's successful, the fund would be used to start a company that would produce and sell the furnaces.
The BCA Group has been raising investment funds in Cape Breton for 20 years. It invested in the former Clearwater seafood processing plant in North Sydney — which was sold to Louisbourg Seafoods and now employs more than 50 people — as well as Classic Frozen Foods, which is expected to begin production soon in Sydport's industrial park.
The group also invested in the Wentworth condominium project in Sydney, the Bras d'Or Lakes Inn in St. Peter's, and several other local companies.
The venture capital fund is available now from BCA Holdings, said MacLeod, and company officials will operate out of the Lyceum building on George Street in Sydney during January and February, where potential investors can get information and view legal documents.
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