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Alberta Investor Tax Credit Boosts Investment in Business

The Alberta Investor Tax Credit (AITC) opened January 2017 to provide investors a 30% tax credit when investing in small businesses in Alberta. $90 million has been invested by the Alberta Government into the three year AITC program as a part of the Alberta Jobs Plan.  As of July 2017, over $26,000,000 is remaining in the 2017 budget. 

Investors can invest in both Eligible Business Corporations and Venture Capital Corporations, more information on what each of these are defined as is available here.  To be eligible as an investor you must pay personal or corporate taxes in Alberta and invest in small businesses in Alberta.  It is important to check if you qualify as an “eligible investor” in Section 35.01 of the Alberta Personal Income Tax Act if you are an individual investor.  Corporations can confirm their eligibility in Section 5 of the Alberta Corporate Tax Act.  There is no minimum investment requirement to meet and investors are able to receive up to $60,000 in credits which may be carried forward over several tax years.  Eligible small business activities for investment include research, development or commercialization of new technology, new products or new processes and businesses engaged in interactive digital media development, video-post production, digital animation or tourism in Alberta.

AITC is served on a first-come first served basis and will remain open until all allocated funds for the year have been used.  Once funding is depleted the program will reopen with a new annual allocation of funds in 2018 and again in 2019, exact dates are yet to be announced.  As stated above, there are over $26,000,000 in funds remaining for 2017.  Apply through the Online Application Portal.  We also encourage you to check out the sample registration forms available on the AITC homepage under ‘How to apply’.  The application processes includes several steps which include registering, and receiving approval, as an Eligible Business Corporation or Venture Capital Corporation and then applying to raise additional equity capital.  Tax Credit Certificates will be awarded in 2018 for the 2017 tax year.  These certificates are provided to the Eligible Business Corporations and Venture Capital Corporations who are responsible for distributing them to their investors.

The full program guidelines are available here and additional information is available on the AITC website.