Manitoba community enterprise development tax credit

• Refundable Manitoba tax credit of up to 45% of eligible equity investments.
• Maximum eligible investment per investor is $60,000 per year.
• Lifetime limit of $3 million in shares issued for approved corporations.

• The applicant must be a cooperative incorporated under The Cooperatives Act or a taxable Canadian corporation incorporated under The Corporations Act.
• The company’s assets must be used in active business operations.
• The company must have net assets under $10 million and gross assets under $25 million.
• The company must have fewer than 200 full-time equivalent employees, with at least 25% residing in Manitoba.
• The corporation must be pre-approved to issue shares under the program.

Who is eligible?

• Cooperatives incorporated under The Cooperatives Act
• Taxable Canadian corporations incorporated under The Corporations Act of Manitoba

Eligible expenses

• Investment in equity capital in community-based enterprises in Manitoba
• Corporate shares acquisition
• Other eligible expenses related to approved corporations

Eligible geographic areas

• Manitoba

There are evaluation and selection criteria for the Community Enterprise Development Tax Credit. The criteria include the following:

• Corporation must be pre-approved to issue shares and meet specific requirements.
• Investors can acquire equity in community-based enterprises in Manitoba.
• There is no minimum investment requirement, but each investor is limited to 10% of the total tax credit issuance.
• Corporations must have assets used in active business under certain limits.
• Approved corporations have a lifetime limit on shares issued and investors can contribute up to $60,000 per year.

• The tax credit is refundable, meaning it can result in a cash refund if it exceeds taxes owed.
• The program has become a permanent fixture within Manitoba's tax credit offerings.
• The T2CEDTC (MAN.) receipt issued for the investment features a unique serial number provided by the Manitoba government.
• Program documents and applications are available in alternate formats upon request.