4. Policy Recommendations
4.1 Priority #1 — Increase Capital Supply with National Investment Tax Credit
We propose a 30% federal investment tax credit for qualified investments in Canadian- controlled innovation companies. This would:
De-risk early-stage investments Drive participation in angel and seed-stage rounds Support national investment syndication and increase pan-regional capital flow
4.1.1 Key Design Elements:
Eligibility for Canadian-controlled private corporations (CCPCs) engaged in R&D and innovation Annual cap to ensure fiscal discipline with expansion capacity based on uptake Stacking compatibility with provincial programs Delivery through CRA with real-time verification and tracking
4.1.2 Provincial Precedents and the Case for National Harmonization
Existing provincial programs demonstrate the viability of targeted tax incentives—but without federal harmonization, capital remains siloed and fragmented.
NEWFOUNDLAND AND LABRADOR 20–35%* NOVA SCOTIA 35% / 45%**
BRITISH COLUMBIA 30%
SASKATCHEWAN 45%
MANITOBA 45%
NEW BRUNSWICK 50%
Figure 7: Provincial Tax Credit Map. See table for breakdown by province of investor eligibility (e.g. individuals, corporations, or both) and whether credits are refundable or non-refundable. *NL offers 35% (outside NE Avalon) and 20% (within NE Avalon); applies to individuals. **NS offers 45% for designated sectors (Ocean Tech, Life Sciences); 35% standard.
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