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What is the BC Small Business Venture Capital Tax Credit?
The Small Business Venture Capital Tax Credit (SBVCTC) is a deductible available to some investors who expand or help create small businesses in British Columbia.
BC investors may receive up to a 30% tax credit on their investment in small business venture capital corporations or eligible growing businesses.
This particular tax credit is available to individuals who invest in eligible BC small businesses and must be filed with your T1 tax return.
Who is eligible for the BC Small Business Venture Capital Tax Credit?
Only BC-based businesses who register as either a venture capital corporation or as an eligible business corporation may qualify for the investment and therefore be eligible for the SBVCTC.
Each eligible business must be invested in by the investor within a 5 year period of the T2 tax return assessment.
This tax credit is effective between 2022 and 2024 where investments are encouraged to allocate equity capital into venture capital businesses. Businesses can currently claim up to $120,000, or up to $60,000 if you are filing before February 20, 2019.
Investors who invest in eligible businesses for the SBVCTC may invest up to $400,000 for the 30% deductible. This credit can be carried forward for up to 4 years.
How to claim the BC Venture Capital Tax Credit
To claim the SBVCTC, you must file your T1 tax return for the tax year and claim this credit on lines 18, 19 or 20. This credit is available as a fully refundable deduction but must be applied to all income tax owed first.
This tax credit is not available to corporations or business entities, it is only available to investors and stakeholders through their personal income tax return.
Trust the tax experts at T2inc to help you file your corporate tax return
Investing opportunities in the province of BC can develop and grow the economy and individual businesses. For eligible small businesses and corporate venture capitals in BC, there is a lucrative tax credit for investing. To take advantage of this tax credit, trust the experts of corporate tax at T2inc.ca.
Contact us today for a simple all-in-one solution for your corporate income tax returns.
Frederic Roy-Gobeil
CPA, M.TAX
President of T2inc.ca and an entrepreneur at heart, I've founded a number of startups including Delve Labs and T2inc.ca. A former tax specialist with Ernst & Young, I'm also a member of the Ordre des comptables professionnels agréés CPA and hold a Master's degree in taxation from the Université de Sherbrooke.
With a wealth of experience in the business world, I'm driven by growth and innovation. I have authored numerous articles and videos on topics related to entrepreneurship, taxation, accounting and financial independence, sharing my passion and expertise with today's entrepreneurs.
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