On May 24, 2022, the Lieutenant Governor, on the advice and consent of the Executive Council, ordered that section 21 of the Small Business Venture Capital Regulation (B.C. Reg. 390/98), be amended by repealing section 21(1) and 21(2)(c) and substituting new language for these sections. Note section 21 deals with the annual maximum venture capital incentive.

The amended subsection 21(1) deals with the annual maximum venture capital tax credit which is set at $41,000,000 for the 2022, 2023 and 2024 calendar years, and $38,500,000 for the 2025 calendar year and each subsequent year.

Subsection 21(2)(c) deals with business activities relate to the expansion of a business that is or was engaged in the manufacture and processing and research and development within British Columbia for commercial exploitation of technologies that: (i) increase energy efficiency and conservation, (ii) reduce greenhouse gas emissions, or (iii) reduce the environmental impact of energy production, generation, storage, transmission, delivery, provision or conversion. The amendment has the annual maximum venture capital tax credit allocation as: (i) $10 000 000 for the 2022, 2023 and 2024 calendar years, and (ii) $7 500 000 for the 2025 calendar year and each subsequent year. 

The Small Business Venture Capital Program, in British Columbia, offers tax credits to investors to encourage them to make equity capital investments in B.C.-based small businesses. The government recognizes that creating new small businesses and expanding existing ones contribute to a healthy economy. These programs give small businesses continuous access to early stage venture capital to help them develop and expand.

B.C. investors receive a 30% tax credit on their investment in a venture capital corporation (VCC) or an eligible business corporation (EBC).

*Source: British Columbia (275/2022) May 24, 2022.