New Dawn Innovation Fund
In 2013, New Dawn announced a new and innovative CEDIF company that would provide investors with the opportunity to support local, innovative, growth-oriented companies. The New Dawn Innovation Fund enables investors the opportunity to grow their money through the CEDIF structure while also growing the community in which they live and work.
The New Dawn CEDIF family of companies have been participating in the CEDIF program since 2003/2004. These companies have overseen the offering of nine CEDIFs amounting to $8.2 million in locally invested capital and paid $950,000 in dividends to investors.
The New Dawn Innovation Fund will invest monies raised in 2014 in Protocase Inc. Founded in 2001 by Steve Lilley and Doug MilburnProtocase drafts and manufactures custom electronic enclosures for designers and engineers. With a staff of 60 and a turn-around time of two to three days, Protocase has established a growing customer base of 4,000 companies and individuals, including IBM, Hewlett-Packard, Stanford University, Apple, Boeing, GE, Intel, Microsoft and Motorola.
What is a CEDIF?
Each year Nova Scotians invest more than $600 million in RRSPs. Less than 2% of this is reinvested in Nova Scotia. With New Dawn Innovation Fund’s 2013 Community Economic Development Investment Fund (CEDIF), a Provincial Equity Tax Credit program, your investment dollars stay in Cape Breton where they can be put to work in your community.
By effectively pooling your money with your neighbours, and investing in a locally-owned business with a strong and consistent growth trajectory, your investment enables a cutting edge export-oriented business to access the capital it needs to expand its facilities and operations and to continue to meet the growing demand for its products. In short, it allows investors and businesses to further the vision of creating a self-reliant people in a vibrant community.
Benefits of Investing
- RRSP eligible
- No Annual Management Fee
- 3% Annual Dividend 
- 35% Provincial Non-Refundable Income Tax Credit
- 100% of your money in invested in Cape Breton
How it Works
A $1000 investment would qualify for a non-refundable provincial income tax credit of $350 on your 2012 tax return. Alternatively, an investor may carry this non-refundable income tax credit forward for 7 years or back for 3 years. The minimum investment is $1000 and the maximum investment is $15,000 per year, per shareholder.
The investment is for a 5 year period and may be rolled over after 5 years for an additional 20% equity tax credit, if the CEDIF meets certain conditions. A further 10% equity tax credit is available to CEDIF investors if they hold the investment for more than 10 years, again, if the CEDIF meets certain other conditions. This means a total possible 65% tax credit or $650 on the original investment of $1000.
Existing RRSPs with other financial institutions can be transferred, without penalty into self-directed RRSPs within a CEDIF. In transferring existing RRSPs into self-directed CEDIF RRSPs, you qualify for the 35% non-refundable tax credit on the full transfer amount.
Who is Eligible to Invest?
Any Nova Scotia resident over the age of nineteen is eligible to invest in a CEDIF anywhere in the province.
How to Invest
The New Dawn Innovation Fund is now open and accepting investments. The New Dawn Innovation Fund will accept investments until March 3, 2014. For more information or to invest, contact Peter Cameron at email@example.com or 902-539-9560 ext. 236