NB Small Business Investor Tax Credit (SBITC)
Eligibility & Details
What this program funds and who can apply
Program Description
One of Canada's most generous investor tax credits — individual investors receive a 50% tax credit on investments in eligible New Brunswick small businesses (up to $125,000/year), while corporate investors receive 15% (up to $75,000/year). Shares must be held for 4+ years.
Eligibility Requirements
- Individual or corporate investors investing in eligible NB small businesses
- Eligible businesses must be registered with NB Department of Finance
- Shares must be held for minimum 4 years
- Business must be a small business based in New Brunswick
- Investment must be in qualifying equity shares
Quick Assessment
Funding Details
- Amount
- Individual investors: 50% tax credit up to $125,000/yr; Corporate: 15% up to $75,000/yr
- Type
- Tax Credit
- Level
- Provincial
- Co-Funding
- Up to 50% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe 50% rate is among the highest investor tax credits in Canada — an investor putting in $100,000 effectively invests $50,000 after the credit. For startups: getting registered as an eligible business makes you dramatically more attractive to angel investors. The 4-year hold period is typical for early-stage investment anyway. Combined with federal capital gains exemption on qualifying small business shares, NB is one of the most tax-efficient jurisdictions in Canada for angel investing.
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Success Profile
New Brunswick startups and growth-stage companies raising angel investment rounds. Technology companies, innovative small businesses, and exporters based in Saint John, Fredericton, or Moncton. The 50% credit particularly attracts local angel investors and helps NB companies compete for investment against larger markets like Toronto and Montreal.
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Evaluation Criteria
Two-stage entitlement process. Business registration: NB Finance reviews application to confirm corporation is incorporated in NB, has net tangible assets under $40 million (including associated corporations), substantially all assets and income generate active business income in NB, and pays at least 75% of wages to NB residents (or 50% if 50%+ of goods/services are exported). Once registered, all qualifying investor investments receive the credit automatically. No competitive scoring.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 6
Eligible Expenses 5
- Equity investments in qualifying shares of registered eligible small businesses
- Investments in Community Economic Development Corporations (CEDCs) registered in NB
- Individual investor investments up to $250,000 per year (qualifying for up to $125,000 credit)
- Corporate investor investments up to $500,000 per year (qualifying for up to $75,000 credit)
- Investments made during the calendar year or within the first 60 days of the following year
Ineligible Expenses 6
- Investments in businesses not registered under the NB Small Business Investor Tax Credit program
- Debt instruments, convertible notes, or loans (equity shares only)
- Investments exceeding the program maximums ($250,000 for individuals, $500,000 for corporations)
- Investments in businesses using funds for passive financial purposes (lending, purchasing shares of another person, dividends)
- Investments in businesses with net tangible assets over $40 million
- Investments by investors who are not NB taxpayers (credit applies to NB provincial tax only)
Intake Periods
Year-round registrations accepted by NB Finance. Investments made January 1 to December 31 qualify for that year's credit; first 60 days of the following year also eligible. No annual cap on total program spending.
Deadline Notes
Ongoing program. Eligible businesses register with the New Brunswick Department of Finance. Investors claim credit on their annual provincial tax return. 4-year holding period for shares.
Open Application Portal →Ineligible Organizations
- Businesses with net tangible assets over $40 million (including associated corporations)
- Businesses without incorporation and registration to carry on business in New Brunswick
- Businesses where substantially all assets/income are not used for active business in NB
- Businesses paying less than 75% of wages to NB residents (unless 50%+ export threshold met)
- Financial intermediaries and passive holding companies
- Businesses using investment funds for passive financial activities (lending, equity purchases, dividends, out-of-province investments)
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
High RiskHigh (investor-side). If investor redeems, cancels, or disposes of qualifying shares before the 4-year holding period expires, the investor must repay the full tax credit received plus interest. No clawback on investor death. Business-side clawback: if business fails to maintain compliance (NB operations, wage thresholds), future Tax Credit Certificates may be denied but existing credits are not typically clawed back.
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How SBITC Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| NB Small Business Investor Tax Credit... | up to $125,000 | Easy | Tax Credit Offset | Ongoing |
| Atlantic Investment Tax Credit (AITC) | 10% of cost of | Easy | Tax Credit Offset | Ongoing |
| Ocean Supercluster | Up to $5 million | Hard | Reimbursement | Call-specific — no open... |
| Atlantic Canada Opportunities Agency ... | Varies | Moderate | Reimbursement | Ongoing |
| Business Development Program (BDP) - ... | Varies (Repayable Contribution) | Moderate | Reimbursement | Ongoing |
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