The B.C. small business venture capital tax credit program is designed to encourage equity investment in B.C. small businesses by providing a tax credit to investors who purchase shares of a registered eligible business corporation or venture capital corporation. The tax credit is equal to 30% of the investment, and is fully refundable for individual investors up to a maximum annual claim limit of $120,000. More information about the program is available here.
The 2025 B.C. Budget released on March 4, 2025 proposes to enhance the program by:
- increasing the maximum annual claim limit for individuals by $180,000 from $120,000 to $300,000 (for investments made on or after March 4, 2025); and
- increasing the program’s maximum annual budget for tax credits by $15 million from $38.5 million to $53.5 million (for the 2025 to 2027 calendar years). Of the additional $15 million, $10 million will be allocated equally among new businesses, clean technology, interactive digital media, and businesses located outside the Metro Vancouver and Capital regional districts, and the remaining $5 million will be available for all eligible businesses.
These proposals make the program significantly more attractive for investors and should help drive growth in B.C. small businesses.
