The tax credit is provided up front at the time the individual purchases the shares. They can claim the LSVCC credit on their tax return for that taxation year. The credit is received up front. One of the conditions is that the shares must be held for an eight-year period. If they are sold within that period, then the tax credit goes back. The rules are slightly different in Quebec, in that they have to be held until the person reaches the age of 65.
On November 18th, 2013. See this statement in context.