Bill 39: An Act Respecting the New Brunswick Income Tax Act and the Small Business Investor Tax Credit Act

The bill primarily affects small to mid-sized New Brunswick businesses seeking investor capital — think tech startups, manufacturers, or other growth-oriented companies that register under the provincial investor tax credit program to attract outside money. Businesses operating in government-designated 'strategic sectors' can now access significantly higher investment thresholds (up to $1,000,000 for individual investors vs. $250,000 previously), making it easier to raise larger rounds of funding. The bill also allows companies to issue convertible debentures — essentially loan-to-equity instruments — giving founders and investors more flexible deal structures beyond traditional share purchases. On the compliance side, registered businesses now face formal administrative penalties ranging from $240 to $10,200 for failing to meet reporting and record-keeping requirements, and the overall asset ceiling to qualify has been raised from $40 million to $50 million.