Manitoba small business venture capital tax credit

This credit was previously called the community enterprise investment tax credit. It is extended to December 31, 2013.

You can claim a non-refundable tax credit if:

• you are a corporation that is not a prescribed venture capital corporation or labour sponsored venture capital corporation under Part LXVII of the federal regulations; and
• you directly invested a minimum of $20,000 in a qualifying community enterprise, as defined in the regulations.

The credit is equal to 30% of the amount invested to a lifetime maximum credit of $450,000.

The annual investment limit is also $450,000 and the maximum amount of the tax credit that you can earn in a given year is $135,000. However, the maximum amount of the tax credit that you can apply against provincial tax in the year is $45,000, including any amounts carried back or carried forward.

This credit must be claimed against Manitoba tax otherwise payable. You can carry forward unused credits to the 10 following tax years or back to the 3 previous tax years from the tax year that you earned the credit.

Claiming the credit

File a completed Schedule 387, Manitoba Community Enterprise Investment Tax Credit. See the schedule for more details.

On line 608 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you are claiming.

Supporting documents - The Province of Manitoba will issue a tax credit receipt for qualifying investments. File it with your T2 return, unless you file electronically. Then keep your receipt in case we ask for it later.

Forms and publications

• Schedule 387, Manitoba Community Enterprise Investment Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)