Small Business Venture Capital Tax Credit

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Venture Capital Programs encourage investors to make equity capital investments in British Columbia small businesses that will enhance and diversify the provincial economy.

The government recognizes that creating new small businesses and expanding existing ones will contribute to a healthy economy. These programs give small business continuous access to early stage venture capital to help them develop and expand.

B.C. investors receive a 30{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} tax credit on their investment in a Venture Capital Corporation or an Eligible Business Corporation.

You may claim a Venture Capital Tax Credit (VCC) for a tax year equal to the lesser of:

  • the amount of the tax credit certificate issued during the tax year or within the first 60 days of the following year, or
  • $60,000

Claiming the Credit

You claim the credit when you file your T1 Income Tax Return.

The VCC tax credit for individuals is fully refundable, but must first be applied against total income tax payable. The tax credit is not refundable for corporations.

If your tax credit certificate is greater than $60,000, the excess may be carried forward for up to four years.

VCCs and EBCs planning to raise tax credit supported investment require a 2017 Equity Authorization.

Tax credit budgets are limited and tax credits are available on a first come first serve basis. VCCs and EBCs are encouraged to claim tax credits as soon as possible.

If you would like more information about the Venture Capital Tax Credit (VCC) or other programs, credits and deductions that can help you and your business, contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.

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