Tax Credit Budget Descriptions
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The Equity Capital Budget was created to encourage equity investment in eligible small businesses in British Columbia. To recognize the risk element involved in making equity investments, the Province provides a 30 per cent refundable tax credit to those who invest in eligible small businesses under the program.
A small business must meet all three of the following requirements to qualify as an eligible small business under the program:
- Together with affiliates, have no more than 100 employees.
- Pay at least 75 per cent of the wages and salaries to employees who regularly report to work in British Columbia.
- Be substantially engaged in a prescribed activity.
Investments are raised through Venture Capital Corporations (VCCs) or Eligible Business Corporations (EBCs).
The Cleantech Venture Capital Budget supports government’s commitment to stimulate investment in the thriving cleantech sector. In addition to the Equity Capital Budget criteria, eligible small businesses must also be substantially engaged within B.C. in manufacturing, processing, research or development of, for commercial exploitation, technologies that do one of the following:
- Increase energy efficiency and conservation.
- Reduce greenhouse gas emissions.
- Reduce the environmental impact of energy production, generation, storage, transmission, delivery, provision or conversion
The Community Venture Capital Budget supports regional economic diversification. In addition to the Equity Capital Budget criteria, eligible small businesses must also be substantially engaged in an activity that promotes community diversification. The New Media Venture Capital Budget supports the government’s commitment to stimulate investment in the thriving new media sector. In addition to the Equity Capital Budget criteria, eligible small businesses must also be substantially engaged within B.C. in developing, for commercial exploitation, interactive digital media products that meet all four of the following criteria:
- Educate, inform or entertain and present information using at least two of the media of text, sound or visual images.
- Are not developed for internal corporate use involving the promotion of products or services.
- Are not used primarily for interpersonal communication.
- Are not products for which public financial support would be contrary to public policy, in the opinion of the certifying authority.
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| Disclaimer
The Province of British Columbia does not in any way guarantee nor express an opinion as to the value of any shares issued by the VCC/EBC, the financial condition of the VCC/EBC or the merits of any investment or business proposal. |
