Small Business Venture Capital Tax Credit Program (Manitoba, Canada)
Last modified on February 12, 2015.
|Applies to States or Provinces||Manitoba|
|Name||Small Business Venture Capital Tax Credit Program (Manitoba, Canada)|
|Policy Category||Financial Incentive|
|Policy Type||Corporate Tax Incentive, Personal Tax Incentives|
|Affected Technologies||Biomass/Biogas, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric (Small), Solar Photovoltaics, Tidal Energy, Wave Energy, Wind energy|
|Program Administrator||SBVC Tax Credit Program|
| Last Substantive Modification
|Information Source||Guide to the Small Business Venture Capital Tax Program:|
The Small Business Venture Capital Tax Credit Program (SBVCTC) assists eligible small corporations to issue new equity to primarily new investors.
Eligible small business corporations can issue eligible shares for new equity investments of $100,000 up to a maximum of $10, 000,000. Eligible investors who purchase eligible investments are able to earn a 45% non-refundable tax credit against Manitoba taxes payable. The SBVC tax credit is not a tax benefit for the eligible corporation.
An eligible investor must invest a minimum of $20,000 during the approval period to be eligible for the tax credit; the maximum investment for tax credit eligibility purposes is $450,000. The maximum tax credit that may be earned is $202,500, and the maximum that can be claimed in a tax year is $67,500. Any unused tax credit may be carried forward for up to ten years or carried back for three years.
An applicant will be eligible to issue shares under the SBVC tax credit program if it meets ALL the following criteria: 1. a Canadian Controlled Private Corporation (CCPC) with a permanent establishment in Manitoba; 2. all, or substantially all of the corporation's assets are used in active business; 3. all, or substantially all of the corporation's revenue is derived from active business 4. the corporation's stated capital is at least $25,000 prior to the issue of eligible shares; 5. the corporation has either: a. 50 or less full time equivalent employees (defined below), or b. Less than $15 million in gross revenue 6. 25% of the corporation's employees are resident in Manitoba; 7. it is not a Reporting Issuer as defined in The Securities Act (Manitoba (http://web2.gov.mb.ca/laws/statutes/ccsm/s050e.php); and 8. it has previously issued less than $10,000,000 in eligible shares under the SBVC tax credit program either on its own, or combined with an affiliated company.
|Department||Manitoba Entrepreneurship, Training and Trade|
|Division||Financial Services Branch|
|Address||1040 – 259 Portage Avenue|
|Zip/Postal Code||R3B 3P4|