Provincial tax credits: is your business eligible?
In response to the call from small business, the British Columbia Government has made a number of tax credits programs available to you. Here is a list of the various provincial tax credits you may be eligible to claim.
The Book Publishing Tax Credit is available to book-publishing corporations that are recipients of a Book Publishing Industry Development Program (BPIDP). Eligible recipients may receive up to 90% of BPIDP contributions made in the tax year.
The Film and Television Tax Credit Program (FTTC) provides refundable tax credits to eligible corporations that produce qualifying film or video productions in BC. The credits are for domestic productions with qualifying levels of Canadian content.
The Foreign Tax Credit may be claimed by corporations on taxes paid to another country on foreign non-business income.
The Interactive Digital Media Tax Credit program provides a refundable 17.5% tax credit on eligible salary and wages incurred by eligible corporations that develop interactive digital media products in BC.
The Logging Tax Credit program allows corporations that have paid a logging tax in BC on income earned from logging operations to claim one third of the taxes paid in the year.
The Mineral Tax has various allowances, credits, and exemptions that your business may be eligible to take advantage of.
The Mining Exploration Tax Credit (METC) is available to eligible corporations and active members of partnerships conducting grassroots mineral exploration in BC. The credit is calculated as 20% of qualified mining exploration expenses, and/or an enhanced rate of 30% for qualified mineral exploration undertaken in prescribed Mountain Pine Beetle affected areas.
Oil and Gas Royalties and Freehold Production Tax - Certain gas and oil production are exempt from the payment of royalty and tax. Deep well credits can also be used to reduce royalties on production of gas and by-products from deep well events in order to reflect higher drilling and completion costs.
Political Contribution Tax Credits may be claimed on contributions to registered BC political parties, BC constituency associations, and candidates for an election to the Legislative Assembly of BC. The credit is calculate as the lesser of $500 OR 75% of contributions up to $100, 50% of contributions between $100 and $550, and 33.33% of contributions in excess of $550.
The Production Services Tax Credit (PSTC) program provides four distinct refundable tax credits to accredited production corporations who produce film or video productions in BC. The credits are for domestic productions with qualifying levels of Canadian content.
The Qualifying Environmental Trust Tax Credit is a fully refundable credit that is available to eligible corporations that are beneficiaries of a qualifying environmental trust located in BC.
The Scientific Research and Experimental Development (SR&ED) Tax Credit Program provides a 10% tax credit to qualifying corporations that carry on SR&ED in BC.
The Small Business Venture Capital Tax Credit is available to corporations that invest in shares of a registered venture capital corporation.
The British Columbia Training Tax Credit (TCC) Program provides eligible employers and apprentices engaged in Red Seal (Interprovincial) and BC- Recognized (non-Red Seal) programs administered through the Industry Training Authority (ITA). The employer may receive a credit of 20% (to a maximum of $4,000) of the salary and wages paid to an apprentice in the tax year.
For more detailed information on these programs, including eligibility and how to claim the tax credits, please visit the B.C. Government web site.
You can also contact your CFIB Business Counsellors anytime at 1-888-234-2232 or firstname.lastname@example.org. We are here to help!