Alberta Clean Technologies (VCC) Ltd. (“ABCT”) is a private corporation approved as a venture capital corporation (“VCC”) under the Investing in a Diversified Alberta Economy Act (“Act”). As a VCC, ABCT operates as an investment fund (“Fund”) focused on investments in Alberta-based clean technology companies in the commercialization or pilot stage of their life-cycle. As an approved VCC, shareholders of ABCT will receive a 30% tax credit on the full value of their investment and the shares (“Shares”) will be eligible investments for RRSP, TFSA, or RRIF purposes.
We invest in Alberta-based companies that are seeking to commercialize proprietary technology in the clean-tech sector. ABCT will work with Alberta-based innovators to bring their high growth potential clean-tech solutions to market.
The Fund carefully selects deal flow rather than employing a “shotgun” blind pool approach. While ABCT believes in the value of a diversified fund, it does not subscribe to the “laissez-faire” attitude of typical blind pool funds that tend to place less emphasis on thorough due diligence and rely on bell-curve success and failure statistics. ABCT is an active Fund that proactively identifies attractive investment companies and supports its portfolio companies to help them to succeed in today’s dynamic marketplace.
Investor Tax Credit
The Alberta Investor Tax Credit (“AITC”) provides an up-front tax credit of 30% to Alberta taxpayers on every dollar invested into the Fund, subject to certain limitations. The AITC program has been approved only through 2019. As such, this is a time-sensitive investment opportunity that may not be replicated. In contrast to resource flow-through shares, where the adjusted cost base of the shares is ground to zero, there is no reduction of the cost base of acquired Shares. In addition, the tax credit is not income or deemed income to the investor. Shares are eligible investments for RRSP and TFSA purposes, thereby greatly reducing an investor’s at-risk amount.