Community Enterprise Development Tax Credit

Overview of the Community Enterprise Development Tax Credit program:

The Community Enterprise Development Tax Credit (CEDTC) provides a refundable Manitoba tax credit of up to 45% to individuals and corporations who acquire equity capital in community-based enterprises in Manitoba. There is no minimum investment requirement for companies or individual investors, but each investor is limited to 10% or less of the total tax credit issuance.

Benefits of the Community Enterprise Development Tax Credit program:

• Up to 45% in tax credits to individuals and corporations who acquire equity capital in community-based enterprises in Manitoba.
• Approved corporations have a $3 million lifetime limit on shares issued.
• Investors can invest a maximum of $60,000 per year.

Eligibility criteria of the Community Enterprise Development Tax Credit program:

• Corporations must be pre-approved to issue shares and must demonstrate that they are:
• A Cooperative incorporated under The Cooperatives Act or a taxable Canadian Corporation incorporated under The Corporations Act;
• Assets are used in active business;
• Net and gross assets are less than $10 million and $25 million, respectively; and
• Less than 200 full-time equivalent employees, at least 25% of which reside in Manitoba;