WHITEHORSE – Yukon Liberals will enhance the Small Business Investment Tax Credit as part of a plan to diversify Yukon’s economy, says Copperbelt North candidate Ted Adel. The Yukon Small Business Investment Tax Credit (YSBITC) is a personal tax credit that reduces Yukon income tax for eligible investors who invest in eligible business corporations making qualified investments.
The Liberals will increase the ceiling for the Yukon Small Business Investment Tax Credit from $1 million to $5 million and increase the asset limit to allow larger companies to qualify.
“The credit has been used successfully for several years by Air North, for example, to grow its company and at the same time has allowed Yukoners to save money at tax time and support a local business,” Adel said. “Increasing the credit will allow more Yukoners to invest in local businesses and increasing the cap will allow larger companies to take advantage of the program.”
An eligible small business corporation is a private or co-operative corporation with: a. a permanent establishment in the territory, and b. at least 50% of assets and payroll in the Yukon.
The tax credit is equal to 25% of qualified investments. The maximum claim for a taxation year is $25,000. The government can currently issue a total of $1 million in credits per year. With $5 million in credits available per year the YSBITC holds the potential to raise $20 million of financing for Yukon companies annually.
The Yukon Liberals platform also contains a commitment to cut corporate taxes by 20% and to eliminate the small business tax completely.
According to the Conference Board of Canada, Yukon currently has the bleakest economic outlook of any jurisdiction in Canada.
“We must diversify our economy so we are not at the mercy of commodity prices,” said Adel. “The current government never learned that lesson over 14 years in office.”
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