New Brunswick has proposed changes to its Small Business Investor Tax Credit program that will improve the incentives for companies and individuals investing in the province’s startups.

The provincial government issued a statement last week saying the proposed amendments are aimed at improving access to capital for New Brunswick startups while encouraging investment in sectors considered strategically important to the provincial economy.

“Through the promotion of strategic, targeted investments, we are recognizing the importance that strategic sectors play in the province’s economy and export potential,” said Finance and Treasury Board Minister René Legacy.

Among the proposed changes is an increase in the tax credit rate for corporate investors to 25 percent from 15 percent. The government also plans to raise the maximum net tangible asset threshold for eligible companies to $50 million from $40 million, expanding the number of businesses that can qualify for the program.

The amendments would also allow the use of convertible debentures as an eligible investment vehicle, giving investors and businesses more flexibility in structuring deals.

The Small Business Investor Tax Credit program provides non-refundable income tax credits to investors who put money into eligible New Brunswick businesses and community economic development corporations. Individual investors would continue to receive a 50 percent credit, which the province said is the highest rate in Canada.

The government is also proposing a two-tiered structure that would offer higher investment limits for companies operating in strategic sectors. Under the proposal, investors in sectors such as agriculture, forestry, aquaculture, manufacturing, architecture and engineering, digital media, performing arts, and information technology could invest up to $1 million.

Investment limits for non-strategic sectors would remain unchanged at $250,000 for individuals and $500,000 for corporate investors.

The changes would apply retroactively to investments made on or after March 17, 2026, if approved.