Small Business Venture Capital Tax Credit
The small business venture capital tax credit is for individuals 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.
You may claim a tax credit in a tax year equal to the lesser of:
the amount of the tax credit certificate issued by the administrator of the venture capital corporation or eligible business corporation programs
during the tax year or within the first 60 days of the following year, or
Budget 2019 proposes to increase the maximum small business venture capital tax credit for the 2019 and later years for investments made after February 19, 2019 to $120,000.
Budget 2019 also proposes to enhance the venture capital tax credit program under the Small Business Venture Capital Act
Claiming the Credit
You claim the credit when you file your T1 Income Tax Return. Enter the amount of the credit you are claiming on line 15 or line 16 (depending on when the purchase was made) of the British Columbia Credits form (BC479).
The small business venture capital 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.
Unclaimed amounts of tax credit certificates may be carried forward for up to four years.
The following legislation applies to the small business venture capital tax credit: