Recognizing the risk involved in making equity investments, the Government of B.C. provides a 30% tax credit to those who invest under the program. The Venture Capital Program's $38.5 million budget enables equity investment up to $128.33 million annually.
Eligible Business Corporations and Venture Capital Corporations need to apply for an equity authorization (PDF 86 KB) each year they want to raise equity capital for which eligible investors can receive a tax credit.
The Venture Capital Program grants equity authorizations to VCCs and EBCs from one of the following budgets:
The Business Creation Venture Capital budget supports the development and growth of new, young businesses in B.C. This budget is for Eligible Business Corporations only.
To be eligible for the Business Creation Budget EBCs must be younger than two years at the time of registration in the program, measured from the business's incorporation date.
The Business Creation budget is $3 million in tax credits, enabling $10 million in equity investment annually.
The Cleantech Venture Capital budget supports the government’s commitment to stimulate investment in the cleantech sector.
To be eligible for the Cleantech budget businesses must be substantially engaged in the manufacture and processing, or research and development, for commercial exploitation, of 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 Cleantech budget is $7.5 million in tax credits, enabling $25 million in equity investment annually.
The Community Diversification Venture Capital budget supports regional economic diversification.
To be eligible for the Community Diversification budget businesses must be located outside Metro Vancouver, the Capital Regional District, and the Resort Municipality of Whistler.
Businesses must also be substantially engaged in an activity that promotes community diversification.
The Community Diversification budget is $3 million in tax credits, enabling $10 million in equity investment annually.
The Equity Capital Venture Capital budget has the broadest focus and is available to registrants that are "substantially engaged" in one or more approved qualifying activities.
The Equity Capital budget is $20 million in tax credits, enabling $66.66 million in equity investment annually.
The New Media Venture Capital budget supports the government’s commitment to stimulate investment in the thriving new media sector.
To be eligible for the New Media budget businesses must be substantially engaged in developing, for commercial exploitation, interactive digital media products that meet all of the following criteria:
- Educates, informs or entertains the user
- Presents information using at least two of the media of text, sound or visual images
- Is not developed for internal corporate use for the promotion of the qualifying business, including its products or services
- Is not used primarily for interpersonal communication
- Is not a product for which public financial support would be contrary to public policy, in the opinion of the certifying authority
The New Media budget is $5 million in tax credits, enabling $16.66 million in equity investment annually.