Community Enterprise Development Tax Credit Program
Winnipeg, MN, Canada
Tax credit for Manitoba community enterprise development
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- grant_single|timelineUnspecified
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Tax Credits
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- Government of Manitoba
- Department of Agriculture
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Manitoba residents and corporations that invest $60,000 annually get 45% (or $27,000) income tax credit while approved enterprises receive a maximum of $3 million in repayable capital.
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This grant is offered by the Manitoba government and is primarily intended for companies based within Manitoba. There is an emphasis on encouraging community-based enterprises operating within this Canadian province.
- Businesses and cooperative organizations located within Manitoba, Canada.
grant_single|admissibleProjectsExample
$60,000
Corporate shares acquisition to support local tech startup growth
$60,000
Equity investment in local organic farming cooperative to enhance green agriculture
$60,000
Investment in local renewable energy start-up to drive sustainability initiatives
$60,000
Acquisition of computer shares to enhance educational technology infrastructure
$60,000
Equity investment in arts cooperative for enhancing cultural projects
$60,000
Investment in a local healthcare NPO to expand mental health services
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Eligibility for this tax credit is determined by specific requirements related to the corporation's structure and activities.
- The corporation must be either a Cooperative incorporated under The Cooperatives Act or a taxable Canadian Corporation incorporated under The Corporations Act.
- The assets of the corporation must be used in active business.
- The corporation must have net assets of less than $10 million and gross assets of less than $25 million.
- The corporation must have fewer than 200 full-time equivalent employees, with at least 25% residing in Manitoba.
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The Community Enterprise Development Tax Credit is available for cooperatives and taxable Canadian corporations that operate community-based enterprises in Manitoba. Eligible businesses must meet specific criteria related to their corporate structure, asset usage, and employment.
- The business must demonstrate that it is a Cooperative under The Cooperatives Act or a taxable Canadian Corporation under The Corporations Act.
- Assets need to be utilized in active business operations.
- The business must have net and gross assets below specific thresholds and employ individuals who primarily reside in Manitoba.
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Some types of companies are not eligible for the Community Enterprise Development Tax Credit grant. To be eligible, corporations must be pre-approved to issue shares and must meet specific criteria related to their incorporation status, assets, and number of employees.
- Companies not incorporated under The Corporations Act or The Cooperatives Act
- Companies with net assets exceeding $10 million or gross assets exceeding $25 million
- Companies with more than 200 full-time equivalent employees, or less than 25% of which reside in Manitoba
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- Investment in equity capital in community-based enterprises in Manitoba
- Corporate shares acquisition
- Other eligible expenses related to approved corporations
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The Community Enterprise Development Tax Credit is available to community-based enterprises in the province of Manitoba, Canada. This program specifically supports companies incorporated within Manitoba that meet specific criteria.
- Manitoba, Canada
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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.
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Here are the steps to apply for the Community Enterprise Development Tax Credit:
- Step 1: Access Application Materials
- Visit the Manitoba Government's website to download the application PDF for the Community Enterprise Development Tax Credit.
- Step 2: Review Application Criteria and Instructions
- Carefully read the criteria and instructions outlined in the application PDF and related documents such as The Income Tax Act (sections 11.8 to 11.12) and corresponding regulations.
- Step 3: Prepare the Application
- Compile all necessary information and documents required for the application, ensuring you meet the listed criteria regarding business structure, asset levels, and employee residency.
- Step 4: Submit Application
- Send your completed application to the Economic Programs Branch.
- Use the mailing address: 1010 - 259 Portage Avenue, Winnipeg, MB R3B 3P4.
- You may also contact them via email at ecdevprograms@gov.mb.ca or phone at 204-945-2475 for further submission instructions or confirmation.
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Here are additional relevant details for this grant:
- The Community Enterprise Development Tax Credit is refundable, providing significant flexibility for investors looking to support community-based enterprises.
- Corporations have a lifetime limit of $3 million on shares issued under the program.
- Investors have an annual investment cap of $60,000, ensuring distribution among a larger pool of investors.
- At least 25% of the employees of participating corporations must reside in Manitoba, reinforcing local economic growth.
- Pre-approval from the government is necessary for corporations to issue shares demonstrating regulatory oversight and reduced risk for investors.
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ecdevprograms@gov.mb.ca
204-945-2475
Apply to this program
Unlock Investment Opportunities with the Community Enterprise Development Tax Credit
The Community Enterprise Development Tax Credit (CEDTC) offers individuals and corporations in Manitoba an enticing opportunity to receive a refundable tax credit of up to 45% for investing in community-based enterprises. This initiative not only supports local economic development but also encourages the growth of vibrant, sustainable communities through strategic investments.
Exploring the Benefits and Mechanics of the CEDTC
The Community Enterprise Development Tax Credit (CEDTC) is a pivotal program designed to spur economic growth and community involvement within Manitoba. Initiated by the government, this tax incentive is available to both individuals and corporate entities who contribute capital towards community-centric businesses. By offering a lucrative tax credit of up to 45%, the CEDTC serves as a catalyst for fostering community enterprise while simultaneously benefiting investors through substantial returns on their investments.This credit is part of Manitoba’s broader strategy to enhance local economies by encouraging investments in smaller businesses that play a vital role in their communities. The CEDTC is particularly advantageous for investors who are interested in supporting businesses with significant community impact yet might not prefer traditional investment avenues. Importantly, there is no minimum investment requirement, placing the power of choice in the hands of the investor to decide how much they wish to contribute within the 10% limit of the total tax credit issuance.Businesses looking to benefit from this program must first gain approval to issue shares. This ensures that only enterprises dedicated to community growth and development are eligible, aligning investor incentives with community-centric objectives. Moreover, the program outlines eligibility criteria designed to ensure that the supported businesses are grounded in Manitoba with a requisite portion of their workforce residing in the province. This not only keeps the investments local but also maximizes the impact on Manitoba’s economy by supporting job creation and retention.Beyond financial returns, investors are drawn to the CEDTC for the social value it underpins. By investing in these enterprises, stakeholders are contributing to sustainability goals and local empowerment, helping fuel economic resilience within their communities. The nature of these investments often involves enterprises that are deeply ingrained in their communities’ fabric, such as cooperatives or small manufacturing firms, that might otherwise struggle to secure sufficient funding through conventional channels.The CEDTC also imposes a $3 million lifetime limit on shares issued by approved corporations, ensuring equitable distribution of available credits and preventing market saturation by a single entity. Such measures are designed to balance the interests of both businesses and investors while preserving community welfare at its core.To apply for this credit, interested parties are encouraged to contact Manitoba's Economic Programs Branch, where they can receive guidance through the application process. This ensures clarity and support for potential applicants, minimizing barriers to entry and facilitating a smooth transition from application to investment.In summary, the Community Enterprise Development Tax Credit is not merely a financial instrument but a vehicle for transformative community betterment. It empowers individuals and corporations to participate actively in the economic growth of Manitoba by investing in businesses that prioritize community needs and development. Through such collaborations, Manitoba is working towards a future where economic success and community wellbeing are inherently linked, making this program an essential component of the province’s economic advancement strategy.
