FREDERICTON (GNB) – Proposed updates to the Small Business Investor Tax Credit program are intended to support New Brunswick businesses, promote innovation and encourage economic growth by fostering greater investment in strategic sectors.
“We are committed to creating a stronger and more prosperous New Brunswick by empowering entrepreneurs and investors to drive productivity and innovation,” said Finance and Treasury Board Minister René Legacy. “Through the promotion of strategic, targeted investments, we are recognizing the importance that strategic sectors play in the province’s economy and export potential.”
The program, which supports small business, provides people with a non-refundable income tax credit as an incentive for investing in eligible New Brunswick businesses and community economic development corporations.
A review of the program was conducted by the Department of Finance and Treasury Board and Opportunities NB, with input from stakeholders. The findings highlighted the program’s effectiveness, as well as opportunities for increased impact with targeted improvements.
“We’ve been clear that improving access to capital is a key part of helping New Brunswick businesses grow, and these updates to the Small Business Investor Tax Credit make one of the strongest programs of its kind in the country even better,” said Luke Randall, minister responsible for Opportunities NB. “The tax credit plays an important role in supporting business growth in New Brunswick and positioning the province as an attractive place for Canadians to live, build and succeed. By increasing flexibility and focusing support on strategic sectors, we’re making it easier for companies to scale, adopt new technologies and improve productivity – helping them compete globally and grow stronger here at home.”
Proposed changes to the New Brunswick Income Tax Act and the Small Business Investor Tax Credit Act include:
- Increasing the tax credit rate for corporate investors to 25 per cent from 15 per cent, better rewarding impactful investments.
- Raising the maximum threshold of eligible corporations’ net tangible assets to $50 million from $40 million, broadening access to the program.
- Introducing convertible debentures as a new eligible funding vehicle for greater flexibility for businesses and investors.
Individual investors would continue to receive a 50 per cent credit, which is the highest rate in Canada.
To promote investment in defined strategic sectors, a new two-tiered tax credit structure would be introduced. Individual and corporate investors in those sectors would have higher investment limits of $1 million.
Strategic sectors will be prescribed in regulation and have been selected based on their export potential and importance to the New Brunswick economy. This includes sectors such as agriculture, forestry, aquaculture, manufacturing, architecture and engineering, digital media, performing arts and information technology.
For non-strategic sectors, the maximum investment limits of $250,000 for individual investors and $500,000 for corporate investors would remain unchanged. A combined maximum eligible investment limit of $1 million would apply to all investments.
These updated program parameters, including the two-tiered tax credit structure, would apply retroactively to any investments made on or after March 17, 2026.
“We welcome the government’s commitment to modernizing the Small Business Investor Tax Credit,” said Monica Gaudet-Justason, president and CEO of the New Brunswick Business Council. “In a period of significant economic uncertainty, any measure that increases investable thresholds and de-risks capital deployment into New Brunswick businesses is a step in the right direction. Access to capital is foundational to productivity growth, business scaling, and export capacity and the Small Business Investor Tax Credit is one of the province’s most direct levers for improving that access.”
The proposed amendments would also streamline program administration, including clearer return processes and timelines, formal objection mechanisms, and the introduction of monetary penalties when guidelines are not met. These are all designed to ensure the program operates more effectively.
Related links
Small Business Investor Tax Credit
Media Contact(s)
Alycia Bartlett, communications, Department of Finance and Treasury Board, alycia.bartlett@gnb.ca.
