Manitoba Community Enterprise Development Tax Credit Program (MB)

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The Community Enterprise Development (CED) Tax Credit encourages local private investment in Manitoba-based opportunities by providing community-based enterprise development projects with the means to raise necessary equity capital.

Summary

The Community Enterprise Development (CED) Tax Credit encourages local private investment in Manitoba-based opportunities by providing community-based enterprise development projects with the means to raise necessary equity capital. Investments in approved eligible enterprises are made directly into the enterprise. The maximum eligible amount that an enterprise can raise for the tax credit is $3,000,000.

A Manitoban or an eligible corporation (permanent establishment in Manitoba and 25 percent of salary and wages paid by the corporation are paid to individuals who are resident in Manitoba) who invests in eligible local enterprises will earn a refundable tax credit of the lesser of $27,000 and 45 percent of the total amount of an eligible investment. No one individual or corporation can acquire more than 10 percent of an issue. Investments must be held for three years. A premature redemption will result in the claw back of the tax credit.

Terms and Conditions

An eligible enterprise must receive endorsement or sponsorship from a local community development organization. Its net and gross assets cannot exceed $10 million and $25 million respectively. The enterprise must employ no more than 200 employees; at least 25 percent of total wages must be paid to Manitobans. Enterprises that are professional practices or involved in primary industries, mineral exploration, recreational/seasonal enterprises or commercial property developers are not eligible.

A business plan and project application must be submitted to the CED Tax Credit office for review and approval. Successful applicants will receive a letter of commitment pending final registration of an Offering Memorandum from the Manitoba Securities Commission.

Contact

Kristine Seier
CED Tax Credit Program
Suite 1040 – 259 Portage Avenue
Winnipeg Manitoba R3B 3P4
Phone: 204-945-8468
Fax: 204-945-1193
Email: kristine.seier@gov.mb.ca
Website: http://www.gov.mb.ca/jec/busdev/financial/cedtc/index.html