Research Oriented Investment Funds (ROIFs) are a specialized form of Labour Sponsored Investment Funds (LSIFs) that provide Canadian investors with access to venture capital investments in companies with a focus on research and development. A minimum of 50% of a ROIF’s investment must be held in companies that are primarily focused on research and innovation. The majority of investments in ROIFs are within the life sciences fields. Investors in Ontario are eligible for up to 30% in tax credits on the first $7,500 invested in Ontario ($5,000 rest of Canada) each year.
*Tax credits are 15% federal and 20% Provincial (in Ontario). The Ontario tax credit will be reduced for the 2010 and 2011 taxation years and eliminated for the 2012 and subsequent taxation years.
