Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk today announced a new regulation to provide Manitoba businesses with increased access to capital under the Community Enterprise Development Tax Credit.
“This program provides Manitobans with valuable personal tax credits for investing in community-based projects,” said Wowchuk. “We are now doubling the value of shares a business can apply for under the credit, supporting innovation and skill development for businesses while strengthening our economy and keeping investment dollars close to home.”
The amendment to the Community Enterprise Development Tax Credit Regulation will increase the share approval limit for a proposed project from $500,000 to $1,000,000. Once a project is approved, a company issues shares eligible for the tax credit. People who invest in these shares receive a personal income tax credit equal to 30 per cent of their investment.
The maximum annual investment limit for an individual investor is $30,000, equal to a maximum tax credit of $9,000. The investments can be made either directly in an investor’s own name, through their retirement savings plan (RRSP) or through their tax-free savings account.
The change to the program is just one part of Manitoba’s economic plan to keep moving forward including a number of initiatives announced in Budget 2009 such as:
- doubling the funding for the Community Enterprise Investment Tax Credit, providing $17 million more in investment capital for small- and medium-sized businesses;
- tripling the amount available under the Manitoba Industrial Opportunities Program (MIOP);
- expanding apprenticeship tax credits to include advanced level apprentices;
- extending the co-op student and graduate components of the Co-op Education and Apprenticeship Tax Credit, the most comprehensive credit of its kind in the country;
- implementing parallel business tax changes announced in the 2009 federal budget including increased depreciation rates for manufacturing machinery and equipment, as well as computer systems;
- extending the Green Energy Equipment Tax Credit to include solar thermal systems in addition to geothermal systems;
- doubling the basic credit for agricultural producers who take action to protect riverbanks and lakeshore areas under the Riparian Tax Credit program beginning in 2009;
- making the retail sales tax exemption for manure slurry tanks and lagoon liners permanent to help livestock producers meet their environmental responsibilities; and
- extending the Odour Control Tax Credit to the end of 2011.
Since 2003, more than $1.8 million in investments have been made through the tax credit program, representing more than $548,000 in tax credits for Manitobans.
For more information on the Community Enterprise Development Tax Credit Program, contact the Economic Development Initiatives Knowledge Centre at 204-945-2157 or 1-800-567-7334 or visit: