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Source verified August 10, 2026
Employee Share Purchase Tax Credit
Tax credit for employee share ownership
Latest source updateLast Update: August 10, 2026Latest change: The Income Tax Act page now surfaces sections 11.18 to 11.23 for the Employee Share Purchase Tax Credit and the related ESOP registration and reporting framework.View change
Latest source update
Last Update: August 10, 2026
Latest change: The Income Tax Act page now surfaces sections 11.18 to 11.23 for the Employee Share Purchase Tax Credit and the related ESOP registration and reporting framework.
Employee Share Purchase Tax Credit page updated
The Income Tax Act page now shows sections 11.18 to 11.23 for the Employee Share Purchase Tax Credit, making the ESOP registration, regulation, and reporting framework directly visible. The page also shows a newer current consolidation date of August 7, 2026. The ownership plan template PDF was also reduced to a contact-label heading change, with no visible change to the phone, email, website, eligibility, or submission instructions.
Funding available
$ 202,500
Deadline
Open continuously
Location
Winnipeg, Manitoba, Canada
Who can apply
Employees, including directors and officers of an eligible corporation
See full eligibility
Overview
The Employee Share Purchase Tax Credit gives employees, including directors and officers of an eligible corporation, a partially refundable 45 percent tax credit for buying shares through a registered ESOP in Manitoba. It supports business growth, succession planning and employee ownership through employee investments involving business takeovers or buyouts.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
- Complete an acquisition or business transfer
Eligible Funding
- Maximum amount : 202,500 $
- Up to 45% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Winnipeg
- Manitoba
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Employee investments involving succession planning, business takeovers or buyouts
Documents Needed
- The corporation’s most recent annual financial statements, most recent income tax return, and most recent Canada Revenue Agency notice of assessment.
- A copy of the Employee Share Ownership Plan, the terms and conditions applying to the shares to be issued under the ESOP, and the indication of the years and/or months requested for ESOP registration.
- A signed statement by an officer of the corporation that the corporation is eligible under the legislation to register an ESOP, a signed statement of the amount of equity capital to be raised under the plan, and an attestation as to the completeness and accuracy of the application.
- The corporation’s articles of incorporation and amendments.
Official resources
Eligibility
Who is eligible?
- Employees, including directors and officers of an eligible corporation
Who is not eligible
- Corporations or any affiliates that are financial institutions, including banks, credit unions or caisses populaires, trustees to the public, insurance businesses, securities traders or dealers, businesses whose principal business is lending money, cashing cheques, purchasing and collecting or selling debt obligations, discounting tax refunds or rebates, or businesses deriving more than 50% of revenue from those activities.
- Prescribed labour-sponsored venture capital corporations.
Eligible geographic areas
- Manitoba
How to apply
- Complete the worksheet and submit it with your application to register an Employee Share Ownership Plan (ESOP).
Processing and Agreement
- The issuer must issue an investment confirmation to the participating employee within 30 days after issuing shares, showing the number of shares issued, the price per share, and the total amount paid for those shares.
- Within 60 days after the end of each year during the term of the registered plan, the issuer must provide a report showing the number of shares issued that year, the amount of equity raised, and how the share proceeds have been or are being used, to each participating employee and to the administrator.
- A registered ESOP may not be amended without the approval of a majority of the participating employees.
Additional information
- Available in alternate formats upon request.
Contacts
Frequently Asked Questions about the Employee Share Purchase Tax Credit Program
What is the Employee Share Purchase Tax Credit?
The Employee Share Purchase Tax Credit gives employees, including directors and officers of an eligible corporation, a partially refundable 45 percent tax credit for buying shares through a registered ESOP in Manitoba. It supports business growth, succession planning and employee ownership through employee investments involving business takeovers or buyouts.
How much funding can be received?
Employee Share Purchase Tax Credit Funds up to 45% of admissible expenses, capped at $202,500 per project.
Who is eligible for the Employee Share Purchase Tax Credit program?
To be eligible for the Employee Share Purchase Tax Credit program, you must:
Pre-registered ESOP
Canadian-controlled private corporation with a permanent establishment in Manitoba
Active-business revenue, net assets under $10 million, gross assets under $25 million, and at least 25% of remuneration paid to Manitoba residents
What expenses are eligible under Employee Share Purchase Tax Credit?
Employee investments involving succession planning, business takeovers or buyouts
Who can I contact for more information about the Employee Share Purchase Tax Credit?
You can contact Government of Manitoba by email at ecdevprograms@gov.mb.ca or by phone at 204-945-7343.
Where is the Employee Share Purchase Tax Credit available?
The Employee Share Purchase Tax Credit program is available the province of Manitoba.
Is the Employee Share Purchase Tax Credit a grant, loan, or tax credit?
Employee Share Purchase Tax Credit is a Tax Credits