Incentives
Incentives are rewards or benefits offered to encourage certain behaviour, such as government tax credits and grants to businesses, or bonuses and discounts offered by businesses to employees and customers. It is a general business term rather than a legal one. Their legal effect depends on the program rules or the contract that creates them.
How BC law treats it
Government incentives are governed by the statute or program terms that create them, such as the federal Income Tax Act for tax credits. Businesses may offer incentives selectively unless the distinction is based on a protected ground under the Human Rights Code, RSBC 1996 c 210, or the offer is deceptive under consumer protection or competition law.
What it means for your business
A BC business claiming tax credits or grants should keep records that prove eligibility.
Risks and common mistakes
Failing to meet the eligibility or reporting terms of a grant or tax credit can lead to repayment, reassessment and interest.
Browse the full Fulcrum Law Dictionary for related terms.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
