The Province of British Columbia, through an Order in Council has enacted amendments to the Small Business Venture Capital Regulation, B.C. Reg. 390/98, under the authority of sections 29.1 and 37 of the Small Business Venture Capital Act. This amendment focuses on adjusting the annual maximum venture capital tax credit and refining its allocation to specific business activities in the province over the coming years. The amendments repeal the previous section 21 of the regulation and replace it with a new provision that clearly defines the maximum amount of venture capital tax credits available annually, beginning in 2025 and extending into future years.

For the calendar years 2025, 2026, and 2027, the annual maximum venture capital tax credit is set at $53,500,000, demonstrating the province’s commitment to fostering growth and investment in small businesses during this period. Starting in the 2028 calendar year and for each subsequent year, this amount is reduced to $38,500,000, suggesting a shift toward a more moderate but sustained incentive structure beyond the initial three-year period of improved support.

Within these overall annual allocations, the regulation specifies particular amounts that will be directed to support targeted business activities. For business activities described in section 11 (1) (d) or in section 11 (1) (h) relating to expansion of a business previously engaged in activities under section 11 (1) (d), the allocated credit is $5,500,000 annually for 2025 through 2027, dropping to $3,000,000 annually for 2028 and thereafter. Similarly, business activities described in section 11 (1) (e) or section 11 (1) (h) related to the expansion of businesses previously involved under section 11 (1) (e) will receive $7,500,000 annually from 2025 to 2027, with a reduced allocation of $5,000,000 annually beginning in 2028.

Business activities described in section 11 (1) (f) or section 11 (1) (h) that concern expansion of businesses that were previously active under section 11 (1) (f) are allocated $10,000,000 per year for the years 2025, 2026, and 2027, with a decrease to $7,500,000 for 2028 and future years. Additionally, funding support for eligible new corporations is established, with an annual allocation of $5,500,000 for 2025 through 2027, tapering to $3,000,000 annually from 2028 onward.

These detailed allocations reflect the province’s intention to maintain a robust environment for small business development, particularly in supporting business expansion and the launch of new corporations, while gradually scaling down the incentive after 2027 to achieve long-term sustainability of the program.

The initial higher funding cap in the first three years serves as a catalyst to stimulate rapid business investment and development during a critical period, perhaps responding to economic recovery or growth targets, while the reduced amounts thereafter suggest a transition to a steady-state model of ongoing support. The measured approach in revising the annual maximum and its distribution across different categories of business activities provides clarity for investors and small businesses alike, enabling them to plan with a better understanding of the available support.

British Columbia (297/2025) June 30, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.