News Release

FREDERICTON (GNB) – The provincial government is increasing the Small Business Investor Tax Credit to help create better conditions for job creation and growth in New Brunswick.

Finance Minister Roger Melanson will introduce amendments to legislation later this week which will increase the Small Business Investor Tax Credit rate for individuals from 30 per cent to 50 per cent. The amendments will also increase the maximum tax credit from $75,000 per year to $125,000 per year.

“Small businesses are the engine of economic development in our province,” said Melanson. “This increase will help provide access to equity financing for small businesses. It will encourage investment, improve competitiveness and foster job creation and growth to move our province forward.”

Under the amendments, individuals who invest in eligible small businesses in the province will be able to receive a non-refundable personal income tax credit of 50 per cent of their investment for a maximum credit of $125,000. Any unused credit amounts can be carried back three years or forward seven years.

These changes will be effective for investments made after March 31, 2015. The amendments implement changes that were first announced in the March 31 provincial budget.

Currently, investments in small businesses registered under the program total almost $12.8 million a year. The new measures are expected to provide an estimated additional $5 million in tax relief annually.

“The opportunity for increased investment is good news for small businesses throughout our province,” said Melanson. “Our government is committed to creating the conditions that will help small businesses grow, thrive and create jobs.”

Small businesses employ more than 95,000 New Brunswickers. More than 30 per cent of workers in the province are employed by firms with fewer than 50 employees.

The increase of the Small Business Investor Tax Credit is one of the ways in which the provincial government is helping small businesses. In January, the government decreased the small business corporate income tax rate from 4.5 per cent to four per cent. The change is a first step in the government’s overall plan to reduce the small business corporate income tax rate to 2.5 per cent by 2018, giving New Brunswick’s small businesses the lowest corporate income tax rate east of Manitoba.