New Brunswick Publishes Regulations Creating CED Corporations

Amendments made to regulations under the Small Business Investor Tax Credit Act

New Brunswick has changed regulations under the Small Business Investor Tax Credit Act to help small businesses access capital by allowing community economic development corporations and co-operative associations to participate in the Small Business Investor Tax Credit program.

“Creating jobs is one of our government’s key priorities,” said Finance Minister Roger Melanson. “The use of community economic development corporations is a new approach in New Brunswick and will encourage local investment throughout the province. The creation of these registered corporations provides more opportunities for New Brunswickers to invest in their own communities as well as in the people and the projects they know.”

The Small Business Investor Tax Credit provides access to equity financing for small businesses so they can grow, be competitive and create jobs.

“Everyone has a role to play in moving New Brunswick forward,” said Melanson. “We need to invest more in our people, our small businesses and our communities. These amendments are an important step to make that happen.”

Small Business Investor Tax Credit

The New Brunswick Small Business Investor Tax Credit provides a 50% (for investments made after April 1, 2015) non-refundable personal income tax credit of up to $125,000 per year (for investments of up to $250,000 per individual investor) to eligible individual investors who invest in eligible small businesses, community economic development corporations in the province. For a corporation and trust eligible investor, the New Brunswick Small Business Investor Tax Credit provide a 15% non- refundable corporate income tax credit of up to $75,000 per year ( for investments of up to $500,000).

In the event that an investor cannot use the entire Small Business Investor Tax Credit amount in a given year, the tax credit can be carried forward seven years or back three years.