ARTICLE
20 March 2025

2025 B.C. Budget Enhances Small Business Venture Capital Tax Credit

F
Fasken

Contributor

Fasken is a leading international law firm with more than 700 lawyers and 10 offices on four continents. Clients rely on us for practical, innovative and cost-effective legal services. We solve the most complex business and litigation challenges, providing exceptional value and putting clients at the centre of all we do. For additional information, please visit the Firm’s website at fasken.com.
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...
Canada Corporate/Commercial Law

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More