As part of 'Canada Starts Here: The B.C. Jobs Plan' to be released Thursday, Premier Christy Clark announced that British Columbia plans to support small business innovation and entrepreneurship by expanding access to venture capital tax credits, extending tax credits available to apprentices and employers, and working with business leaders to cut red tape and streamline administration of provincial taxes.

"Innovation and entrepreneurship create jobs, diversify economic activity and help keep British Columbia globally competitive," Premier Christy Clark said. "One of the key challenges for small business is access to capital for business start-up and expansion. Through 'Canada Starts Here', B.C. will help small business access early-stage venture capital to help commercialize ideas, attract and retain employees, expand operations and bring their ideas to global markets."

B.C. intends to provide a $3-million increase to B.C.'s successful Small Business Venture Capital Tax Credit, targeted to direct investments in new businesses. This program encourages individuals - known as "angel investors" - to invest their own capital directly into an eligible small business and offer strategic expertise.

"The Small Business Venture Capital Tax Credit program was a key ingredient to Endurance's early success. The VCT, along with a strong business plan and a great team, helped us produce one of the world's safest, most reliable, and lowest cost of energy wind turbines here in B.C.," said Glenn Johnson, CEO of Endurance Wind Power Inc. The company's 3,700-plus square-metre (40,000-plus square-foot) Surrey facility employs 60 people. "Our turbines generate clean, renewable energy for homeowners, farmers, businesses and institutions across North America, the UK and an expanding global market."

The additional $3 million would boost the current $30-million annual tax credit budget for venture capital programs for small business, business, allowing for up to $10 million in additional equity capital for eligible new small businesses.

With more than one million job-openings in the province projected for the coming decade and emerging economic sectors creating new jobs, British Columbia needs a highly skilled workforce. The Province intends to deliver a three-year extension of its approximately $31-million annual funding for the B.C. Training Tax Credit program to help employers and apprentices get the skills and training they need. Continuing this funding through 2014 gives employers and apprentices the certainty they need to plan their business and education.

The Province will also continue its leadership in reducing the cumbersome steps and time involved in accessing government services and complying with regulatory requirements by:

• Extending government's commitment to no net-increases in regulations to 2015.
• Introducing legislation to ensure progress on regulatory accountability is reported annually.
• Reducing the regulatory burden on citizens and small businesses.
• Streamlining and simplifying government processes.

"This government has been a leader in cutting red tape, and we're committed to further streamlining government so that hard-working British Columbians can focus more time on running their business, and less time on paperwork and bureaucracy," Finance Minister Kevin Falcon said. "Drawing on this experience, I will ask an expert panel to take a broad look at B.C. taxes to make recommendations that help support business competitiveness, economic growth and jobs for British Columbians, as well as propose common sense administrative improvements to streamline the PST."

As part of a broader review of the provincial tax system, the Minister of Finance will lead a consultation with business leaders and experts to develop recommendations to help support a globally competitive, diverse economy that supports jobs and innovation within the Province's balanced budget framework. The resulting proposals would be considered for Budget 2012.

Premier Christy Clark's speech to the Surrey Board of Trade: http://snd.sc/qnSiXb

Two backgrounders follow.

Media Contacts:

Chris Olsen
Press Secretary
Office of the Premier
604 220-1640

Jamie Edwardson
Manager, Communications
Ministry of Finance
250 356-9872

BACKGROUNDER 1

Sept. 21, 2011 Office of the Premier

Ministry of Finance

Jobs plan extends support for entrepreneurs, employers and apprentices

Small Business Venture Capital Tax Credit: $3 million for new businesses

• The additional $3 million would boost the current $30-million annual tax credit budget for venture capital programs for small business. Eligible investors may receive a 30 per cent tax credit for investing in eligible small businesses under the Small Business Venture Capital tax credit program. The program currently supports up to $100 million annually in total investments.
• Sectors that currently benefit include businesses creating opportunities in regional community diversification, clean technology innovation, the development of interactive digital media products, prescribed manufacturing and processing, destination tourism, and research and development of proprietary technology.
• The additional $3 million would target direct investments in new businesses, business, allowing for up to $10 million in equity capital for eligible new small businesses.

Apprenticeship Training Tax Credit: extending to 2014

• The Province intends to deliver a three-year extension of its approximately $31-million annual funding for the B.C. Training Tax Credit program to help employers and apprentices get the skills and training they need.
• The apprenticeship training tax credit program encourages employers and apprentices to participate in and complete apprenticeship programs offered in British Columbia.
• Apprentices with employers registered under the program receive classroom instruction as well as on-the-job training from employers.
• The program provides employers with refundable tax credits in respect of salary and wages paid by employers to eligible apprentices. Apprentices registered in an eligible program are also eligible for a fully refundable personal income tax credit.
• B.C.'s training tax credit program complements federal incentives for apprenticeship training, which are limited to the first two years of "Red Seal" apprenticeship programs.
• B.C.'s program provides basic and completion credits for prescribed non-Red Seal programs, and completion credits for Red Seal training following the initial two-year federal credit.
• To encourage participation in trades training in respect of First Nations individuals or persons with disabilities, individual and employer tax credits are enhanced by up to 50 per cent.

Media Contacts:

Chris Olsen
Press Secretary
Office of the Premier
604 220-1640

Jamie Edwardson
Manager, Communications
Ministry of Finance
250 356-9872

BACKGROUNDER 2

Sept. 21, 2011 Office of the Premier

Ministry of Finance

Expert panel to review B.C. tax system

As part of the 'Canada Starts Here: B.C. Jobs Plan', an expert panel appointed by the Minister of Finance will review B.C. taxes to develop recommendations to support business competitiveness, economic growth and jobs for British Columbians.

The panel of business leaders and experts will be asked to:

• Develop recommendations to help support a globally competitive, diverse economy that supports jobs and innovation within the Province's balanced budget framework.
• Develop recommendations to simplify and streamline the sales tax system to make common-sense improvements to reduce administration for government and business.
• Develop recommendations for closing tax loopholes.

British Columbians generally have one of the lowest overall tax burdens in Canada, and maintaining this advantage will be a core principle of the review, as will continuing B.C.'s strong record of prudent fiscal management. The terms of reference will preclude recommending a return to harmonization or matching the federal GST tax base.

With a new decade underway, a more diverse, export-oriented economy that has opened Canada to trade in goods and services with the Asia Pacific and the world, British Columbia needs a taxation system that helps the province capitalize most effectively on the economic opportunities ahead.

A chair, panel members, consultation approach and formal terms of reference will be announced shortly by the Minister of Finance. The panel will begin its work in October 2011, with recommendations expected to inform Budget 2012.

Media Contacts:

Chris Olsen
Press Secretary
Office of the Premier
604 220-1640

Jamie Edwardson
Manager, Communications
Ministry of Finance
250 356-9872