Manitoba Small Business Venture Capital Tax Credit Program (SBVCTC)

• Application form
• Most recent annual financial statements
• Most recent income tax return and Notice of Assessment
• Articles of Incorporation and amendments
• Summary of business activities and proposed use of proceeds

Who is eligible?

• Manitoba taxpaying individuals and corporations.
• Manitoba limited partnerships with a Manitoban general partner.

Who is not eligible

• Businesses whose principal activity is a regulated professional service.
• Businesses primarily involved in real estate, resource extraction, farming, or fishing.
• Businesses operating restaurants, lounges, bars, amusement, or gaming activities.
• Businesses providing education, health care, social, or similar services.

Eligible expenses

The SBVC share proceeds must be used within the holding period (three years from the date shares issued) for the purposes approved in the application. The SBVC share proceeds cannot be used for any of the following purposes:

• To invest outside Manitoba
• To lend to others
• To pay for a business re-organization
• To pay a dividend or return capital to a shareholder
• To pay an amount owing to a shareholder, an affiliate, or a person related to a shareholder or affiliate
• To purchase, develop or maintain land or equipment for sports
• To support an ineligible activity
• To support an activity that does not promote economic development or is contrary to public policy

Ineligible Costs and Activities

• Professional services regulated under Manitoba law
• Management, financial, or administrative services
• Real estate, oil and gas, and mineral activities
• Farming, fishing, hunting, and similar activities
• Franchises, restaurants, lounges, bars, amusement, gaming, education, health care, or social services

Eligible geographic areas

• Manitoba

• Applications are reviewed and approved by the program administrator.
• The review and approval process takes about four to eight weeks.
• The administrator may contact the applicant by email for additional information.
• If approved, the company and its legal representative receive instructions for issuing tax credit receipts.

The program's information includes details about required submissions, eligibility criteria, and penalties for non-compliance.

• Applications for the SBVC tax credit program can be submitted online or via email.
• An application must include recent annual financial statements, income tax return, notice of assessment, terms and conditions for shares, and a description of proposed use of proceeds.
• The program requires a minimum investment of $10,000 per investor while the maximum investment eligible for the tax credit is $500,000 per company.
• The tax credit is non-refundable and can be carried forward for up to ten years or back for three years.
• Shares must be held for a minimum of three years, during which prohibited uses include investing outside Manitoba or paying dividends to shareholders.
• Certain business activities such as professional services, leasing, and farming are ineligible for the program.
• Approved applicants must file an annual information return including financial statements and a questionnaire for program effectiveness evaluation.