Small Business Investor Tax Credit Program

📋 Eligible Entities - Individual investors (resident in New Brunswick) - Corporations (including holding companies) - Trusts (discretionary and non-discretionary) - Investors seeking tax credits on qualifying investments in small businesses operating in New Brunswick Note: The eligible small business must be a New Brunswick-based enterprise that qualifies under the program's definition of "small business." --- ### 💰 Funding Details | Investor Type | Tax Credit Rate | Maximum Investment | Maximum Tax Credit | |---|---|---|---| | Individual Investors | 50% | $250,000 | $125,000 | | Corporations & Trusts | 15% | $500,000 | $75,000 | - Structure: Non-refundable tax credit applied against provincial income tax liability - Repayability: Not a loan—tax credit reduces tax owed - Carryforward: Unused credits may be carried forward to subsequent tax years (subject to provincial rules) --- ### 🛠️ Approved Expenses Tax credits apply to direct equity investments in eligible New Brunswick small businesses, including: - Common or preferred shares - Equity contributions to partnerships or sole proprietorships - Subordinated debt instruments (if structured as equity-like investments) Investments must support business operations, growth initiatives, and job creation within New Brunswick. --- ### ⚠️ Conditions & Milestones - Residency requirement: Individual investors must be New Brunswick residents - Investment holding period: Typically 3+ years (refer to program rules for early exit penalties) - Business eligibility: Small business must meet program criteria (asset limits, payroll thresholds, operational status) - Documentation: Completed application with investment agreements, financial statements, and business plan required - Claim deadline: Tax credits claimed on annual provincial tax return in the year investment is made - Compliance: Investor and business must maintain compliance with program conditions throughout holding period - No clawback during hold: Credits remain secure if conditions are met; clawback provisions apply if business or investment status changes