February 6, 2009
Province Moves To Help Growing Manitoba Businesses Raise Investment Capital In Uncertain Times: Swan
– – –Manitoba Doubles Budget For Community Enterprise Investment Tax Credit
Manitoba’s Community Enterprise Investment Tax Credit (CEITC) has been expanded to encourage more investors to partner with growing businesses in need of equity capital to continue growing, Competitiveness, Training and Trade Minister Andrew Swan announced today.
“There are some great venture opportunities around, but the global financial crisis has limited access to needed capital,” said Swan. “By expanding this tax credit, Manitoba is supporting promising business ideas that just need a little support to succeed in today’s markets.”
The CEITC was established last year to provide a 30 per cent income tax credit incentive to new equity investors in eligible Manitoba businesses. In 2008, this program leveraged new share capital for Manitoba companies involved in the life sciences, information technology and new media sectors. In 2009, the province will double the program's budget to $10 million to help growing Manitoba businesses raise more than $33 million in share capital.
Eligible investments can earn a 30 per cent, non-refundable provincial tax credit up to an annual limit of $135,000. Investors can claim up to $45,000 in provincial tax credits each year and carry forward any unused portion of the credits for 10 years.
These CEITC changes will:
· increase the allowable annual amount of share issuance to $33 million from $16.7 million to help Manitoba companies raise more equity capital;
· expand the list of ineligible business activities to include the performing arts, sports, amusement and gaming; and
· require the CEITC application to be in a form approved by Manitoba Competitiveness, Training and Trade in order to reduce the amount of paperwork to be supplied by the applicant.
“This is another measure by the provincial government to ensure the business environment is competitive and businesses have the tools they need for uncertain economic times,” said Swan.
Full information, including applications, will be available on the Manitoba Competitiveness, Training and Trade website starting Friday, Feb. 13. The department will receive applications starting Wednesday, Feb. 25.
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