Small Business Investor Tax Credit Program

Business Size: small, medium

Region: New Brunswick

Other Criteria: Applicant corporations and Community Economic Development Corporations/Associations (CEDC/Associations) must be incorporated or registered to carry on business in New Brunswick., Applicant businesses (including associated corporations/associations) must have net tangible assets less than $40 million., All, or substantially all, of the applicant business's assets and income must be used to generate active business income in New Brunswick., Applicant businesses must pay at least 75% of wages and salaries to New Brunswick residents for four years post-registration (50% if >50% goods/services are exported outside NB)., Applicant businesses must raise a minimum of $10,000 in capital from at least three eligible investors., CEDC/Associations have additional requirements including a constitution outlining their economic development strategy for a defined community, a board of at least six NB resident directors, and are not non-profit/charitable/non-taxable entities., Maximum capital to be raised by a CEDC/Association is $3,000,000 within a 12-month period., Individual investors must be 19 years of age or older and a New Brunswick resident, making a minimum investment of $1,000 and a maximum annual investment of $250,000 for credit purposes., Corporation and Trust investors must have a permanent establishment in New Brunswick, making a minimum investment of $50,000 and a maximum annual investment of $500,000 for credit purposes., Investors must hold shares for a minimum of four years and cannot use government, municipal, or public authority financial assistance for share acquisition., Shares must be newly issued, fully paid, and not 'replacement shares' (defined as shares purchased by an investor who disposed of other shares of the corporation/association after specific dates and before the new issuance).