Individual Investors
Individual Investors who live in NB and are investing in a Corporation that has qualified for the Tax Credit will be eligible for a Non-Refundable Personal Income Tax Credit of 50% of their investment amount, up to $125,000 per year (or to be used on aggregate investment amounts up to $250,000 per year).
Corporate Investors
Corporations and trust eligible Investors who live in NB and are investing in a Corporation that has qualified for the Tax Credit will be eligible for a Non-Refundable Corporate Income Tax Credit of 15% of their investment amount, up to $75,000 per year (or to be used on aggregate investment amounts up to $500,000 per year).
If an investor cannot use the entire Small Business Investor Tax Credit amount in a given year, the tax credit can be carried forward seven years or back three years.
What is the Small Business Investor Tax Credit?
The Province of New Brunswick offers a Tax Credit to residents of NB who invest in an eligible businesses that have applied to and qualified for the Tax Credit.
Corporations who are eligible to apply for the Tax Credit must meet the following criteria, but is not limited to:
the corporation must be a private company
the corporation is incorporated or registered to carry on business in New Brunswick
all, or substantially all, of the corporation’s assets and income must be used to generate active business income in New Brunswick
the corporation must pay, in each of the four years after the date of registration, at least 75% of its wages and salaries to individuals who are residents of New Brunswick unless the corporation exports outside of N.B. more than 50% of their goods and services, then, the requirement is for 50% of its wages and salaries to individuals who are resident of New Brunswick