The Alberta Investor Tax Credit (AITC) by Prashant Sreekumar,
Sreekumar Professional Corporation
(Reprinted from ABC Tech QuikTech Notes May 12, 2016)
It’s called Alberta Investor Tax Credit. As per the 2016 Budget, one of the initiatives that aims to improve the diversification of the economy and create jobs is to invest in the technology industry by giving tax breaks. It says:
“The Alberta Investor Tax Credit, worth $90 million over two years, will benefit investors who invest in eligible small and medium‑sized enterprises in Alberta” [1]
The aim is to encourage investments by giving tax breaks to Venture Capitalists (Alberta investors, 30%, over 2 years), who will invest in key sectors such as: Information technology, clean technology, health technology, interactive digital media and game products, and post-production, visual effects and digital animation sectors [2]
The application will be accepted (first come first served) starting:January 2017. Additional details such as what body(s) will administer the program are yet to be announced.
While the government engages the stakeholder groups and finalizes the program's design (eligibility, retroactivity), it’s time to freshen up your business ventures.
References
[1] http://finance.alberta.ca/publications/budget/budget2016/fiscal-plan-tax-plan.pdf
[2] http://www.alberta.ca/documents/Factsheet_AITCAnnouncement_2016018.pdf
Other Investment Tax Credit Programs
BioAlberta has prepared an analysis of the Alberta government's existing science research and development investment tax credit program HERE. British Columbia and several other provinces have demonstrated the merit of applying tax credits for stiring the investment in small technology businesses - summarized by the Calgary Chamber of Commerce HERE.