Entrepreneurs say a decision by the Kenney government to freeze a tax credit program that helps small businesses access capital could derail Alberta’s technology sector just as it is starting to take off.

A government spokesman confirmed Thursday that applications for the Alberta investor tax credit — which offers a 30 per cent tax credit to private investors who put money into companies doing work in non-traditional sectors such as information technology, clean technology, health technology, interactive digital media and digital animation — are no longer being processed, in spite of the program’s website noting there is still $6.1 million in tax credits available for this year.

Justin Brattinga, press secretary for Economic Development Minister Tanya Fir, said the future of the investor tax credit — along with other business tax credits introduced by the NDP government, including the capital investment tax credit and the digital media credit — is uncertain. He added the government believes it has already taken steps to make Alberta more competitive for business and investment by cutting the corporate tax rate.

“We are reviewing these programs to ensure that they are an effective and responsible use of taxpayer dollars,” Brattinga said in an email.

However, proponents of the credit say it has proven to be an effective way of getting much-needed venture capital into the hands of new industries, in a province where investment dollars have typically gone to oil and gas. While the program — which was modelled after successful versions in other jurisdictions, including B.C. and Manitoba — encountered some bumps in its early stages, by the end of 2018, the $28.1 million in tax credits that had been approved had leveraged $94 million in investment for small and mid-sized businesses.

“It really encouraged a lot of investors that are traditionally energy investors or real estate investors to invest in technology,” said Adrian Camara, CEO of Calgary-based Athennian, which has developed a cloud software program for use in the legal profession.