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"Point in Time" Regulation Content

Small Business Venture Capital Act

Small Business Venture Capital Regulation

B.C. Reg. 390/98

NOTE: Links below go to reg content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to present)
SECTIONEFFECTIVE DATE
Section 1 February 20, 2019
[retro from July 19, 2019]
March 2, 2019
[retro from July 19, 2019]
Section 3.1 March 2, 2019
[retro from July 19, 2019]
Section 11 September 17, 2010
February 20, 2019
[retro from July 19, 2019]
July 19, 2019
Section 20 March 2, 2019
[retro from July 19, 2019]
Section 21 September 17, 2010
July 19, 2012
May 25, 2015
May 13, 2016
February 23, 2017
February 20, 2019
[retro from July 19, 2019]
Section 22 July 1, 2010

 Section 1 (1) definitions of "direct sale" and "scale-up activity" were added by BC Reg 182/2019, effective February 20, 2019 [retro from July 19, 2019].

 Section 1 (3) definition of "common interest group" BEFORE amended by BC Reg 182/2019, effective March 2, 2019 [retro from July 19, 2019].

"common interest group", in relation to a corporation, means 2 or more persons, whether or not associated or affiliated, who, pursuant to an agreement, commitment or understanding, exercise, or intend to exercise, in concert, any rights attached to or associated with their shares;

 Section 3.1 (a) to (e) BEFORE amended by BC Reg 182/2019, effective March 2, 2019 [retro from July 19, 2019].

(a) the share transfer is a direct share transfer by the purchaser to the purchaser's retirement savings plan or registered retirement income fund;

(b) the share transfer is a direct share transfer by the purchaser to a spousal retirement savings plan or registered retirement income fund;

(c) the share transfer is a share transfer to an executor or estate due to the death of a purchaser;

(d) the share transfer occurs as the result of a company share exchange right, share reorganization, acquisition or amalgamation and

(i) the eligible business corporation remains registered under section 28.2 of the Act, and

(ii) the registered owner of the share is the same

after the share transfer takes place;

(e) the share transfer occurs as the result of the exercise of a warrant, option or right entitling the holder to purchase or acquire an equity share of an eligible business corporation as defined paragraph (a) of the definition of "equity share" in section 1 of the Act and the registered owner of the equity share so purchased or acquired is the same as the registered holder of the warrant, option or right.

 Section 3.1 (a.1) was added by BC Reg 182/2019, effective March 2, 2019 [retro from July 19, 2019].

 Section 11 (part) BEFORE amended by BC Reg 265/2010, effective September 17, 2010.

(1)  For the purposes of section 10 (1) (c) of the Act the following business activities are prescribed:

 Section 11 (e) (v) BEFORE amended by BC Reg 265/2010, effective September 17, 2010.

(v)  is not a product for which public financial support would, in the opinion of the certifying authority, be contrary to public policy;

 Section 11 (2) (part) BEFORE amended by BC Reg 265/2010, effective September 17, 2010.

(2)  Despite subsection (1), a prescribed activity does not include

 Section 11 (2.1) was added by BC Reg 265/2010, effective September 17, 2010.

 Section 11 (3) (part) BEFORE amended by BC Reg 265/2010, effective September 17, 2010.

(3)  For the purposes of section 10 (1) (c) of the Act, a small business is substantially engaged in a prescribed activity

 Section 11 (3) (a) (formula) BEFORE amended by BC Reg 265/2010, effective September 17, 2010.

Activity Assets + Activity Expenses

Total Assets + Total Expenses

where, for the purposes of this paragraph,

 Activity Assets =  the value of assets of the small business used in British Columbia in the prescribed activity,
 Total Assets =  the total value of all assets of the small business,
 Activity Expenses =  all expenses incurred during the calculation period with respect to the portion of the prescribed activity carried on in British Columbia, and
 Total Expenses =  the total of all expenses incurred during the calculation period with respect to all operations of the small business,

 Section 11 (1) (g) and (h) were added by BC Reg 182/2019, effective February 20, 2019 [retro from July 19, 2019].

 Section 11 (2) (f) (iv) was added by BC Reg 182/2019, effective February 20, 2019 [retro from July 19, 2019].

 Section 11 (2.2) and (2.3) were added by BC Reg 182/2019, effective February 20, 2019 [retro from July 19, 2019].

 Section 11 (1) (d) (i) BEFORE amended by BC Reg 182/2019, effective July 19, 2019.

(i) that is carried on by a business located in a region outside the Greater Vancouver Regional District or the Capital Regional District, and

 Section 20 (b) BEFORE amended by BC Reg 182/2019, effective March 2, 2019 [retro from July 19, 2019].

(b) the aggregate value at cost of investments made by the venture capital corporation, the name of each small business the shares of which the venture capital corporation sold and the value at cost of those shares;

 Section 21 BEFORE re-enacted by BC Reg 265/2010, effective September 17, 2010.

 Annual maximum venture capital incentive

21  For the purposes of section 29.1 (1) of the Act, the annual maximum venture capital tax credit for the 2009 calendar year and for each subsequent year is the total of the following:

(a) $14 500 000;

(b) $3 000 000, if the eligible investment is outside the Greater Vancouver Regional District or the Capital Regional District;

(c) $5 000 000, if the eligible investment is substantially engaged in an activity prescribed under section 11 (1) (e);

(d) $7 500 000, if the eligible investment is substantially engaged in an activity prescribed under section 11 (1) (f).

[en. B.C. Reg. 209/2008, s. 3; am. B.C. Reg. 209/2008.]

 Section 21 BEFORE amended by BC Reg 228/2012, effective July 19, 2012.

 Annual maximum venture capital incentive

21  (1)  For the purposes of section 29.1 (1) of the Act, the annual maximum venture capital tax credit for the 2010 calendar year and for each subsequent year is $30 000 000.

(2)  The following portions of the annual maximum venture capital tax credit are allocated as follows:

(a) $3 000 000 to business activities described in section 11 (1) (d);

(b) $5 000 000 to business activities described in section 11 (1) (e);

(c) $7 500 000 to business activities described in section 11 (1) (f).

[en. B.C. Reg. 265/2010, Sch. s. 2.]

 Section 21 (1) (a) and (b) BEFORE amended by BC Reg 93/2015, effective May 25, 2015.

(a) for the 2012 to 2014 calendar years is $33 000 000, and

(b) for the 2015 calendar year and each subsequent year is $30 000 000.

 Section 21 (2) (d) BEFORE amended by BC Reg 93/2015, effective May 25, 2015.

(d) for the 2012 to 2014 calendar years, $3 000 000 to eligible new corporations.

 Section 21 (1) BEFORE amended by BC Reg 116/2016, effective May 13, 2016.

(1) For the purposes of section 29.1 (1) of the Act, the annual maximum venture capital tax credit

(a) for the 2012 to 2015 calendar years is $33 000 000, and

(b) for the 2016 calendar year and each subsequent year is $30 000 000.

 Section 21 (2) (d) BEFORE amended by BC Reg 116/2016, effective May 13, 2016.

(d) for the 2012 to 2015 calendar years, $3 000 000 to eligible new corporations.

 Section 21 (1) BEFORE amended by BC Reg 46/2017, effective February 23, 2017.

(1) For the purposes of section 29.1 (1) of the Act, the annual maximum venture capital tax credit for the 2016 calendar year and each subsequent year is $35 000 000.

 Section 21 (2) (a), (b) and (c) BEFORE amended by BC Reg 182/2019, effective February 20, 2019 [retro from July 19, 2019].

(a) $3 000 000 to business activities described in section 11 (1) (d);

(b) $5 000 000 to business activities described in section 11 (1) (e);

(c) $7 500 000 to business activities described in section 11 (1) (f);

 Section 22 BEFORE amended by BC Reg 168/2010, effective July 1, 2010.

 Application to Supreme Court

22  An application for an order under section 31 (3) of the Act shall be made in accordance with the Supreme Court Rules.