New provincial rules will double the value of an existing tax credit program that will channel investments toward local businesses in Manitoba.
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 a provincial economic plan to address the recent economic downturn.