I’m pleased to report that we have been approved as an Eligible Business Corporation (EBC) under the British Columbia Small Business Venture Capital Act. This allows us to arrange for generous tax credits for our investors who are BC residents. We are authorized for up to $2,000,000 of investment under this program.
To quote from the BC Investment Capital Program Guidelines:
Individuals who purchase shares of an EBC are eligible to receive a refundable tax credit equal to 30% of their investment amount, up to a maximum of $60,000 in credits per taxation year.
The program is also available under slightly different although still generous rules for BC corporations.
What does this mean in simple terms? Investors who live in BC and who buy shares of ConnectionPoint can get a substantial portion of their investment back within approximately one year i.e. after they file their tax returns for this year (2009). If investors move quickly, we may even be able to acquire tax credits for the 2008 tax year as there are very small amounts available to us from the program run last year.
In fact, we’ve had one investor already take advantage of this on Monday with a $150,000 investment that should give back a $45,000 tax refund in the next few months as their 2008 tax return is processed. This in no way affects the potential return on investment. What a great win for the investor and the company!
I’m very proud of how supportive our provincial government is of small startup software companies like mine.
If you are interested in taking advantage of this amazing program, please contact Daryl – 604.984.2466