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 amount of the tax credit certificate issued, or
- provincial income tax otherwise payable
Budget 2019 proposes to enhance the venture capital tax credit program under the Small Business Venture Capital Act.
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.
- Read more about the venture capital tax credit program as well as other investment capital programs.
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.
The following legislation applies to the small business venture capital tax credit: