Raising capital is one of the hardest parts of growing a small business in New Brunswick. The Small Business Investor Tax Credit (SBITC) helps by giving individual investors a provincial tax credit when they invest in eligible New Brunswick businesses. If you’re a founder seeking equity funding or an investor considering a local opportunity, understanding this program can make a real difference.
The Small Business Investor Tax Credit is a provincial personal income tax credit offered by the Government of New Brunswick. It encourages individuals to invest their own money into qualifying small businesses based in the province.
Here’s how the program is structured at a high level.
The credit reduces the investor’s provincial tax bill after making a qualifying investment. It does not provide cash directly to the business, but it can make your company more attractive to potential investors.
To claim the Small Business Investor Tax Credit, the investor must:
The program is aimed at people investing their own funds, such as angel investors, family members, or community investors.
For a business to qualify under the Small Business Investor Tax Credit, it must be approved by the province before or as part of the investment process. While detailed criteria are set by government policy, eligible businesses are generally:
Not every industry or business structure qualifies. Approval is not automatic. Planning ahead is important.
The value of the credit depends on the size of the eligible investment. Program rules in effect at the time of approval also determine the amount. The province sets:
These details can change. Investors and businesses should rely on the official certification from the Government of New Brunswick, not assumptions or past rates.
The Small Business Investor Tax Credit is applied against New Brunswick personal income tax payable. Whether unused credits can be carried forward or how they are treated depends on provincial tax rules and the investor’s personal tax situation.
Investors should always confirm tax treatment with a qualified tax professional.
The process usually involves both the business and the investor:
Timing matters. If a business is not approved or the investment is structured incorrectly, the credit may be denied.
Tools like GrantHub’s eligibility matcher can help you filter investor incentives and business funding programs by province and business type in seconds.
The Small Business Investor Tax Credit offers several benefits for both investors and businesses:
Business owners should discuss the program with potential investors early. Investors should review all requirements before committing funds.
Assuming every small business qualifies
Eligibility is not automatic. Businesses must meet provincial criteria and receive approval before the credit can be claimed.
Raising funds before certification
If the investment is made before the proper approvals are in place, the investor may not be eligible for the credit.
Confusing tax credits with grants
This program benefits the investor’s tax return. It does not provide direct grant funding to the business.
Ignoring personal tax implications
The credit affects New Brunswick personal income tax. Investors should understand how it fits into their broader tax picture.
Q: What is the Small Business Investor Tax Credit in New Brunswick?
It is a provincial personal income tax credit that rewards individuals who invest in eligible New Brunswick small businesses. The goal is to encourage local investment and business growth.
Q: Who can claim the Small Business Investor Tax Credit?
Only individual investors who pay New Brunswick personal income tax and make qualifying investments in approved businesses can claim the credit.
Q: What types of businesses qualify for the credit?
Eligible businesses are small, New Brunswick–based companies that meet provincial criteria and receive approval under the program. Not all industries or structures qualify.
Q: How do investors apply for the credit?
The business must first be approved by the province. After the investment is made, the investor receives certification and claims the credit on their New Brunswick tax return.
Q: Is the Small Business Investor Tax Credit taxable income?
Tax treatment depends on provincial tax rules and the investor’s situation. Investors should confirm details with a tax advisor.
GrantHub tracks active grant and tax credit programs across Canada. You can check which ones match your business profile.
If you are raising capital in New Brunswick, the Small Business Investor Tax Credit can be a valuable tool to attract local investors. Check eligibility early. Structure investments according to program rules. This helps avoid problems and makes the process smoother. GrantHub helps Canadian businesses find funding programs and investor incentives that fit their stage, location, and goals—so you can move forward with confidence.
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