Community Enterprise Development Tax Credit Program
MN, Canada
Tax credit for Manitoba community enterprise development
grant_single_labels|summary
grant_single|eligibleFinancing
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- grant_single|projectCostPercent
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- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
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- grant_single|allIndustries
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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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grant_single|admissibleProjectsExample
$60,000
Steinbach
Equity investment in local organic farming cooperative to enhance green agriculture
$60,000
Winnipeg
Investment in local renewable energy start-up to drive sustainability initiatives
$60,000
Thompson
Corporate shares acquisition to support local tech startup growth
$60,000
Brandon
Acquisition of computer shares to enhance educational technology infrastructure
$60,000
Selkirk
Equity investment in arts cooperative for enhancing cultural projects
$60,000
Dauphin
Investment in a local healthcare NPO to expand mental health services
grant_single_labels|admissibility
- A refundable Manitoba tax credit of up to 45% is available for individuals and corporations who invest in community-based enterprises in Manitoba.
- The eligibility criteria for the Community Enterprise Development Tax Credit are:
- Corporation must be a Cooperative or a taxable Canadian Corporation
- Assets used in active business
- Net and gross assets are less than $10 million and $25 million
- Less than 200 full-time equivalent employees, with at least 25% in Manitoba
- A lifetime limit of $3 million on shares issued by approved corporations
- Investors can invest a maximum of $60,000 per year
grant_eligibility_criteria|who_can_apply
There are eligible types of companies for the Community Enterprise Development Tax Credit (CEDTC) grant. Corporations must be pre-approved to issue shares and must be either a Cooperative incorporated under The Cooperatives Act or a taxable Canadian Corporation incorporated under The Corporations Act.
- A Cooperative incorporated under The Cooperatives Act
- A taxable Canadian Corporation incorporated under The Corporations Act
grant_eligibility_criteria|who_cannot_apply
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
grant_eligibility_criteria|eligible_expenses
- Investment in equity capital in community-based enterprises in Manitoba
- Corporate shares acquisition
- Other eligible expenses related to approved corporations
grant_single_labels|criteria
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.
grant_single_labels|contact
ecdevprograms@gov.mb.ca
204-945-2475
Apply to this program
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Community Enterprise Development Tax Credit (CEDTC)
The Community Enterprise Development Tax Credit (CEDTC) in Manitoba offers eligible individuals and corporations a refundable tax credit of up to 45% for investing in community-based enterprises. Investors can receive tax credits for acquiring equity capital, with no minimum investment requirement, though each investor is limited to 10% of the total tax credit issuance.
Understanding the Community Enterprise Development Tax Credit (CEDTC)
The Community Enterprise Development Tax Credit (CEDTC) is a financial incentive program in Manitoba designed to promote investment in community-based enterprises by providing a refundable tax credit to eligible investors. Individuals and corporations who acquire equity capital in approved community enterprises can benefit from a tax credit of up to 45% of their investment, encouraging economic development at the grassroots level.
To qualify for the CEDTC, corporations must be pre-approved to issue shares and meet certain criteria, including being a cooperative under The Cooperatives Act or a taxable Canadian Corporation under The Corporations Act. These corporations must have assets used in active business, with net and gross assets of less than $10 million and $25 million, respectively, and fewer than 200 full-time equivalent employees, at least 25% of whom must reside in Manitoba.
Approved corporations under the CEDTC have a $3 million lifetime limit on shares issued, while individual investors can contribute up to $60,000 per year. There is no minimum investment requirement, but each investor is limited to 10% or less of the total tax credit issuance, ensuring a broad distribution of tax credits among investors.
The application process for the CEDTC involves submitting the required documentation to the Economic Programs Branch in Manitoba. Once approved, investors can claim their tax credits and support the growth of community enterprises while benefiting from financial incentives provided by the program.
By encouraging investment in community-based enterprises, the CEDTC aims to foster economic development, create jobs, and strengthen local businesses in Manitoba. The tax credits provided through the program incentivize individuals and corporations to support community initiatives, ultimately contributing to the growth and sustainability of these enterprises.
Overall, the Community Enterprise Development Tax Credit (CEDTC) plays a vital role in promoting economic growth, supporting entrepreneurship, and building resilient communities in Manitoba through strategic investments in community-based enterprises.