Employee Share Ownership Program Incentives
There are no fees payable when you register your ESOP plan or apply for tax credits.
1. Tax Credits
The Employee Share Ownership Program provides employees with a 20% tax credit for making investments in their employers' businesses. There is no life time limit on the amount of the tax credit. Although, there is a $2,000 tax credit limit per person per calendar year (i.e. a $10,000 investment).
If the employee investor sells his or her shares prior to the end of the 3-year hold period, they will be required to repay all of part of the tax credits received on the shares, depending on the selling price.
2. Cost Sharing
What is cost sharing?
The Government of British Columbia will reimburse the company, or an employee group, 50% of the eligible costs of a professional advisor used in the establishment, registration or ongoing administration of an ESOP plan. This reimbursement is limited to $2,500 per calendar year.
Who is eligible to apply for cost sharing?
Any company with fewer than 150 employees is eligible to apply or any group of employees no matter what the company size. Click here for the Certification of Employee Group Form (PDF 94 KB).
How do I apply for cost sharing?
The company or employee group representative completes the Cost Sharing Application (PDF 87 KB), attaching original copies of the professional advisors' invoices, and forwards them to the Administrator.
3. Analyst Assistance
Employee Share Ownership Program staff at the Ministry can provide you with sample plans and concrete examples of successful ESOP plan terms. They will guide you through the process from the initial consultation with employees to applying for tax credit certificates.