B.C. targets innovation, job creation and training
By Contributor
As part of Canada Starts Here: The B.C. Jobs Plan, the province plans to support small business innovation and entrepreneurship by expanding access to venture capital tax credits, extending tax credits available to apprentices and employers, and working with business leaders to cut red tape and streamline administration of provincial taxes.
B.C. intends to provide a $3-million increase to B.C.’s successful Small Business Venture Capital Tax Credit, targeted to direct investments in new businesses.
This program encourages individuals — known as “angel investors” — to invest their own capital directly into an eligible small business and offer strategic expertise.
The additional $3 million would boost the current $30-million annual tax credit budget for venture capital programs for small business, business, allowing for up to $10 million in additional equity capital for eligible new small businesses.
With more than one million job-openings in the province projected for the coming decade and emerging economic sectors creating new jobs, British Columbia needs a highly skilled workforce.
“One of the key challenges for small business is access to capital for business start-up and expansion,” Premier Christy Clark said. “Through ‘Canada Starts Here’, B.C. will help small business access early-stage venture capital to help commercialize ideas, attract and retain employees, expand operations and bring their ideas to global markets.”
The Province intends to deliver a three-year extension of its approximately $31-million annual funding for the B.C. Training Tax Credit program to help employers and apprentices get the skills and training they need.
Continuing this funding through 2014 gives employers and apprentices the certainty they need to plan their business and education.
Small Business Venture Capital Tax Credit: $3 million for new businesses
- The additional $3 million would boost the current $30-million annual tax credit budget for venture capital programs for small business.
- Eligible investors may receive a 30 per cent tax credit for investing in eligible small businesses under the Small Business Venture Capital tax credit program. The program currently supports up to $100 million annually in total investments.
- Sectors that currently benefit include businesses creating opportunities in regional community diversification, clean technology innovation, the development of interactive digital media products, prescribed manufacturing and processing, destination tourism, and research and development of proprietary technology.
- The additional $3 million would target direct investments in new businesses, business, allowing for up to $10 million in equity capital for eligible new small businesses.
Apprenticeship Training Tax Credit: extending to 2014
The Province intends to deliver a three-year extension of its approximately $31-million annual funding for the B.C. Training Tax Credit program to help employers and apprentices get the skills and training they need.
The apprenticeship training tax credit program encourages employers and apprentices to participate in and complete apprenticeship programs offered in British Columbia.
Apprentices with employers registered under the program receive classroom instruction as well as on-the-job training from employers.
The program provides employers with refundable tax credits in respect of salary and wages paid by employers to eligible apprentices. Apprentices registered in an eligible program are also eligible for a fully refundable personal income tax credit.
B.C.’s training tax credit program complements federal incentives for apprenticeship training, which are limited to the first two years of “Red Seal” apprenticeship programs.
B.C.’s program provides basic and completion credits for prescribed non-Red Seal programs, and completion credits for Red Seal training following the initial two-year federal credit.
To encourage participation in trades training in respect of First Nations individuals or persons with disabilities, individual and employer tax credits are enhanced by up to 50 per cent.
