T1258: New Brunswick Small Business Investor Tax Credit

If you’re an individual investor and you purchased eligible shares in eligible small businesses, community economic development corporations, and associations in the province, you can earn a non-refundable tax credit worth 50% of your investment (up to $125,000 including unused credits) per year, for investments after April 1, 2015.

You can claim this credit on form T1258 if you’re a resident of New Brunswick and:

  • You’re at least 19
  • As an individual, you invested no less than $1,000
  • You received a tax credit certificate (to receive one of these, your investments during the year as an individual can’t be more than $250,000)
  • Your shares were purchased, held, or disposed of by a qualifying trust
  • You held the investment for at least four years and
  • You didn’t use financial assistance from any government or public authority to acquire your shares

When completing your return, you can claim this credit for the shares you bought in 2018 (that you didn’t claim on your return in 2017) and those purchased in the first 60 days of 2019. If you don’t need to use the full tax credit in a given tax year, you can carry it forward 7 years, or back 3 years.

If you’re filing a paper return, you’ll need to attach a copy of your NB-SBITC-1 tax credit certificate. If you’re filing electronically, make sure you keep all of your supporting documents in case the Canada Revenue Agency (CRA) asks to see them later.

What’s an eligible share?

An eligible share is a newly issued share of the capital stock of a business that’s registered under the Small Business Investor Tax Credit Act. These shares don’t include any that, in the opinion of the Minister of Finance, were issued with the intention of claiming the Small Business Investor Tax Credit.

Remember, before you invest, ask to see the business’ certificate of registration under the Small Business Investor Tax Credit program. Doing so allows you to make sure that the company you’re about to invest in is part of the program.

Where do I claim this?

Follow these steps in H&R Block's 2018 tax software:

Before you begin, make sure that you told us that you lived in New Brunswick on December 31, 2018.

  1. Under the PREPARE tab, click IN THIS SECTION icon.
  2. In the Investments box, click the Add This Topic button.
  3. Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:

    DIY17_PENSION_EN.png
  4. Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled New Brunswick small business investor tax credit (T1258), then click Continue.
  5. When you arrive at the page for the New Brunswick small business investor tax credit, enter your information into the tax software.
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