Société de capitaux admissible – Grant Brief ### 📋 Eligible Entities - Individual investors (personal investors) - Institutional investors (pension funds, investment firms, etc.) - Small businesses in British Columbia that have registered as an eligible capital corporation (société de capitaux admissible) - The small business must be BC-incorporated and meet provincial criteria for eligible capital corporation status ### 💰 Funding Details - Tax Credit Rate: 30% of investment amount - Structure: Non-repayable tax credit (not a loan) - Recipient: The investor receives the tax credit, not the business directly - Application: Credit is claimed against investor's provincial income tax liability - No matching requirement: Investor bears 100% of investment cost; tax credit provides 30% incentive ### 🛠️ Approved Expenses This is an equity investment tax credit program, not a direct grant. Approved uses depend on the small business's operations: - General business operations and working capital - Capital equipment and machinery - Technology and infrastructure development - Research and development initiatives - Business expansion and growth activities - Any lawful business purpose (broad eligibility for recipient company) ### ⚠️ Conditions & Milestones - Registration Requirement: Small business must formally register as an eligible capital corporation with BC authorities - Investment Timing: Tax credit applies to investments made in registered eligible capital corporations - Investor Eligibility: Individual and institutional investors must meet BC tax residency or registration requirements - Capital Retention: Invested capital must remain in the business for specified holding periods (subject to program terms) - Claim Process: Investor claims 30% credit on BC personal or corporate tax return - No Clawback Guarantee: Credit is permanent once claimed, but early capital withdrawal may affect eligibility - Annual Limits: Subject to provincial annual investment caps and aggregate program limits