Yukon Business Investment Tax Credit
YT, Canada
Investment Tax Credit in Yukon
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 01, 1999
- grant_single|grantStatusClosed
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
- Professional, scientific and technical services
grant_single|grantors
- Government of Yukon
- Department of Finance (YK)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Attract Yukon investors to your organization by issuing shares in exchange for an agreed-upon return and an individual tax credit of 25% on the amount invested.
grant_single_labels|projects
This grant is available to companies that meet specific geographical eligibility requirements determined by their location within the Yukon. Eligible companies must operate and have their primary establishment within this territory.
- Organizations with a permanent establishment in the Yukon.
- Businesses with their head office located in the Yukon.
grant_single|admissibleProjectsExample
$25,000
Implementing a digital literacy program for seniors
$25,000
Establishing a community kitchen to provide meals to low-income families
$25,000
Developing an eco-friendly packaging line for a local beverage company
$25,000
Establishing a solar panel installation service
$25,000
Launching a mobile health clinic to serve remote communities around Calgary
$25,000
Launching an art therapy program for youth at risk
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
Families residing in Yukon with dependent children can apply for the Yukon child benefit program.Yukon residents aged 19 and over and Yukon resident organizations can apply for the Business Investment Tax Credit, provided they meet the specified eligibility criteria.Individuals residing on Yukon First Nations Settlement Lands, belonging to specified self-governing First Nations, or other residents once their respective First Nations negotiate agreements, can apply for the First Nations Income Tax Credit.Corporations manufacturing and processing in the Yukon, with specified business sizes, can apply for the Yukon manufacturing and processing profits tax credit.Individuals or corporations making political contributions to recognized territorial political parties or candidates can apply for the political contributions tax credit.Individuals and corporations that have eligible research and development expenses and meet location criteria can apply for the Yukon research and development tax credit.Yukon residents who have paid foreign income tax can apply for the foreign tax credit to avoid double taxation on the same income.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
The research and development tax credit covers eligible expenses related to scientific research and experimental development in the Yukon.
- Total eligible expenses for scientific research and experimental development.
- Additional 5% of total eligible Yukon College expenses.
grant_single_labels|criteria
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.
grant_single_labels|register
Here are the steps to submit an application for the Business Investment Tax Credit in Yukon:
- Step 1: Determine Eligibility
- Ensure the organization meets all the eligibility criteria for the Business Investment Tax Credit.
- Step 2: Complete the Necessary Forms
- Download the YSBITC-1, Business Investment Tax Credit form from the Government of Yukon or CRA website.
- Step 3: Submit the Application
- Fill out the YSBITC-1 form with all necessary details regarding the investment and the investor’s information.
- Submit the completed application form to the relevant government department managing the tax credit, ensuring all required documentation is included.
- Step 4: Record Keeping
- Keep a copy of the submitted application and any supporting documents for your records.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
1-866-426-1527
Apply to this program
Understanding Yukon's Tax Credits for Personal and Corporate Filers
The Yukon region offers a comprehensive set of tax measures for both personal and corporate entities, ensuring its residents can access benefits and credits tailored to their unique situations. These measures include adjustments to personal and corporate income tax, special benefits for families, and incentives for investment and business development.
Exploring the Specifics of Yukon's Personal and Corporate Income Tax Measures
Yukon's income tax framework is designed to provide a balanced approach to personal financial assistance and corporate investment incentives. For individual taxpayers, Yukon implements a structured personal income tax system with various brackets and rates. The tax rates for 2024 range from 6.4% for the first income bracket up to 15% for the highest income bracket over $500,000, ensuring a graduated contribution level aligned with income classes. Important deductions and credits such as the basic personal amount and spousal amount set at a base of $14,156, with maximum adjustments up to $15,705, offer taxpayers significant reliefs to reduce taxable income.
Furthermore, the Yukon Child Benefit program provides essential assistance to families by offering a per-child amount, helping to alleviate financial burdens and enhance the well-being of dependent children. As part of this program, families could receive up to $918 annually for each child starting July 1, 2024, though the benefit diminishes for families whose net income exceeds the threshold of $35,000. This incremental reduction is calculated at 2.5% for families with one child and 5% for families with multiple children, underscoring the tailored approach to benefit distribution based on family size and income levels.
On the corporate front, Yukon extends various tax credits that foster business growth and attract investment. The Business Investment Tax Credit incentivizes residents to invest in local businesses by offering a 25% tax credit on the invested amount, with provisions to carry unused credits forward or backward. This approach encourages the circulation of capital within the territory, bolstering economic activity and supporting local enterprises.
The Yukon also promotes manufacturing and processing sectors through a tax credit available for large corporations, applicable to profits earned within the territory, though its benefit to small corporations has been nullified following the reduction of the small business tax rate to 0%. Additionally, businesses and individuals engaged in research and development within Yukon have access to the Research and Development Tax Credit, rewarding up to 15% of eligible expenses, with additional incentives for collaborations with Yukon College.
Moreover, the First Nations Income Tax Credit is a vital measure ensuring equitable taxation for residents on settlement lands of self-governing First Nations. This credit mitigates disparities by ensuring these taxpayers do not incur higher taxes than their counterparts residing on non-settlement lands, reflecting Yukon's commitment to fairness and support for its diverse population.
Political contributions are also incentivized through a structured tax credit that encourages democratic participation and supports political entities. This credit, restructuring contributions from individuals and corporations to recognized territorial political bodies, presently allows a maximum annual credit of $650, formulated through percentages based on contribution amounts.
Overall, Yukon's income tax measures are strategically designed to accommodate the needs of individuals, families, and businesses alike, fostering an environment that supports economic participation, community growth, and equitable financial contribution.
