Track Record | Mentor Model | Investment Strategy | Tax Credit

Tax Credit
The BC Small Business Venture Capital Act was established in 1985 to stimulate investment in qualifying businesses that are engaged in value-added sectors of the British Columbia economy. By increasing access to capital for small businesses, the program aims to help diversify the economy and create new job opportunities for British Columbians.

This legislation provides investors with a 30% 'cash back' refundable tax credit when investing in a qualifying VCC. The table below sets out the tax benefits and net investment cost for a BC resident at the top marginal rate (43.7%) that invests $10,000 through an RRSP.

Tax Savings on a $10,000 Investment in
BC Advantage Funds
Amount Invested

$10,000

Less refundable credit

-$3,000

Less RRSP tax deduction

-$4,370

Net cost of investment

=$2,630

Tax credit incentives are realized through the issuance of provincial tax credit certificates. Venture Capital Corporations apply to the Administrator of the SBVCA for Tax Credit Certificates on behalf of their investors. Investors then attach their Tax Credit Certificate to their income tax return to be filed with the Canada Customs and Revenue Agency for processing.