Companies in BC can register as an Eligible Business Corporation (EBC) in order to give a a 30% tax credit to BC investors.
The Province of BC gives tax credits to individuals and corporations when they invest in EBCs.
EBC Definition
Direct link to the law
https://www.bclaws.ca/civix/document/id/complete/statreg/10_390_98#section11
Eligibility High Level
Investment Capital Program Guidelines (PDF)
From the PDF:
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Business must be incorporated and registered to operate in B.C.
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Business must have a permanent place of business in B.C.
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Business must pay at least 75% of its annual wages & salaries to B.C. employees
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Business must be “substantially engaged” in one or more of the qualifying activities
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Business, together with its corporate affiliates, must not have more than 100 employees
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Business must have raised at least $25,000 in equity capital
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Business must have at least 80% of its assets located in B.C.
Tax Credits
Going to individual and corporate investors
Individual investors are entitled to a 30% refundable tax credit, up to an annual maximum tax credit of $120,000.
eg if a BC investor invests $100K into an EBC, they get $30K in cash back from the government.
Corporate investors are entitled to a 30% non-refundable tax credit, however, there is no annual tax credit limit.
eg. if a BC corporation invests into an EBC, they can only claim it against taxes.