Tax Credits – Small Business Venture Capital Tax Credit

Corporations investing in shares of a registered venture capital corporation or eligible business corporation can claim a Venture Capital Tax Credit (VCC).

Corporations may claim a tax credit in a taxation year equal to the lesser of:

• the amount of the tax credit certificate issued by the Ministry of Small Business, Technology and Economic Development
• provincial income tax otherwise payable

The VCC may be applied only to provincial income taxes payable. If you cannot apply all of your tax credit amount to British Columbia taxes payable in the year, the excess may be carried forward up to four years.

For more information on the Venture Capital Tax Credit Program, please see the Ministry of Small Business, Technology and Economic Development website, or call 1-800-665-6597.

Claiming the credit

The credit is claimed when filing your T2 Corporation Income Tax Return. Enter the amount of the credit you are claiming on line 656, and complete lines 880, 881 and 882 if applicable, of Schedule 5, Tax Calculation Supplementary – Corporations.

Legislation