Small Business Venture Capital Tax Credit

The small business venture capital tax credit is for corporations that invest in shares of a registered venture capital corporation or eligible business corporation.

The small business venture capital tax credit encourages investors to make equity capital investments in B.C. small businesses, in order to give small businesses access to early-stage venture capital to help them develop and grow.

Corporations may claim a tax credit in a tax year equal to the lesser of: 

The venture capital tax credit may be applied only to provincial income taxes payable. If you cannot apply your entire tax credit amount to B.C. taxes payable in the year, the excess may be carried forward up to four years.

Claiming the Credit

You can claim the credit when you file your T2 Corporation Income Tax Return. Enter the amount of the credit you are claiming on line 656, and complete lines 880, 881 and 882 if applicable of Schedule 5, Tax Calculation Supplementary – Corporations.

Legislation

The following legislation applies to the small business venture capital tax credit:

Useful Contacts

For questions about the small business venture capital tax credit, call:

  • 1-800-665-6597 (toll free within Canada)


For questions related to tax claims, contact Canada Revenue Agency:

  • 1-800-959-5525 (toll free within Canada)
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