Yukon Business Investment Tax Credit Analysis ### 📋 Eligible Entities - Yukon-based corporations (primary focus) - Small and medium-sized enterprises (SMEs) operating in Yukon - Canadian-controlled private corporations (CCPCs) registered in Yukon - Businesses engaged in active business operations within Yukon - Entities not in tax loss carryforward positions (investors require tax credits to utilize) - Excludes: Businesses primarily engaged in real estate, financial services, or passive investment activities ### 💰 Funding Details - No direct grant amount cap — funding size depends on investor participation and share issuance - Investor tax credit: 25% of the amount invested (non-refundable tax credit to the investor) - Equity-based structure — funds raised through sale of shares (not a loan or grant) - Non-repayable to business — investors receive equity ownership and tax benefits, not repayment obligations - Investor cost: Effective cost of capital = 75% of nominal investment (due to 25% tax credit value) - No matching requirement from the business ### 🛠️ Approved Expenses Grant funds (investor capital) can generally be used for: - Working capital and operational expenses - Equipment and capital asset purchases - Technology and software investments - Inventory acquisition - Payroll and hiring - Business expansion and growth initiatives - Marketing and market development - Professional services and consulting - Specific restrictions may apply — consult program guidelines for prohibited uses ### ⚠️ Conditions & Milestones - Investor eligibility: Individual Yukon residents or Canadian citizens; must have tax liability to benefit from credit - Share issuance: Business must issue common or preferred shares; no debt instruments qualify - Minimum investment amounts may apply (verify current threshold with Yukon Department of Economic Development) - Hold period: Shares typically subject to holding requirements (generally 2+ years minimum) - Documentation: Business must maintain share certificates, capitalization table