New Alberta Investor Tax Credit aimed at startups, small businesses

The Alberta Investor Tax Credit (AITC) is designed to help Alberta startups and small businesses raise equity capital by offering investors a tax credit based on their investment.

The CA$90 million pool of credits set aside by the Government of Alberta over the next three years for the AITC will be offered on a first-come first-served basis until the budget for each calendar year has been fully allocated.

On January 16, 2017, the online application portal for the AITC opened. It will remain open until the 2017 budget of CA$28 million has been fully allocated.

The AITC is a 30 percent tax credit available to eligible individual or corporate investors who invest directly or indirectly in Alberta small businesses that are engaged in certain specified industries, including the research, development and commercialization of proprietary technologies.

One noteworthy feature is the establishment of the Venture Capital Corporation, which are intended to operate as venture capital funds that make eligible equity investments on behalf of its shareholders, which will be entitled to AITC certificates.

The AITC is an encouraging sign for startups and venture capital in Alberta and is available retroactively for eligible investments made on or after April 14, 2016.

To determine eligibility and learn more about the AITC, please click here.