Yukon Business Investment Tax Credit

This tax credit provides a benefit for individuals investing in designated Yukon organizations, promoting local economic growth. The financing modalities include a fixed individual tax credit with flexible carry-back and carry-forward options.

• Offers an individual tax credit of 25% on the amount invested.
• Maximum claim for a taxation year is capped at $25,000.
• Unused tax credits can be carried back for 3 years or carried forward for up to 7 years.

Eligibility for this grant is determined by specific requirements related to the applicant's residency and organization status.

• The organization must be an incorporated, private corporation.
• The organization must maintain a permanent establishment in the Yukon.
• The organization must have its head office located in the Yukon.
• The organization must pay at least 25% of its salaries and wages to Yukon residents.
• The organization must not exceed $100 million in assets.

Who is eligible?

Eligible expenses

The grant supports a range of tax credits aimed at benefiting personal, corporate, and specific community groups within the Yukon. The eligible projects focus on investments, contributions, manufacturing, research, and tax harmonization related to First Nations.

• Yukon child benefit and Canada child benefit adjustments for families with children.
• Business Investment Tax Credit for investments in eligible Yukon organizations.
• First Nations Income Tax Credit for residents on settlement lands to ensure tax parity.
• Manufacturing and processing profits tax credit for corporations in the Yukon.
• Political contributions tax credit for donations to territorial political entities.
• Research and development tax credit for eligible scientific and experimental projects.
• Foreign tax credit to prevent double taxation on income taxed internationally.

Eligible geographic areas

This grant is specifically available to organizations established within a defined jurisdiction to ensure alignment with regional benefits.

• Organizations located in the Yukon territory.

There are evaluation and selection criteria for this grant. Applicants will be assessed based on the following criteria:

• Investment in an eligible Yukon organization.
• Applicant's age and residency status in Yukon.
• Compliance with the Yukon Business Investment Tax Credit requirements.

Here are additional relevant details for this grant:

• Yukon tax credits such as the Business Investment Tax Credit allow for a carry-back period of 3 years and a carry-forward period of 7 years for unused amounts.
• Political contributions yield tax credits calculated with specified percentages of the contribution amount, adhering to a maximum limit.
• Research and development tax credits require eligibility conditions including residence and location of work.
• The foreign tax credit prevents double taxation on income also taxed internationally.