If you're a resident of Manitoba and you invested in eligible community enterprise development projects or in community development investment pools in 2018 (or in the first 60 days of 2019), you might be able to claim the Manitoba community enterprise development tax credit.
To qualify for this refundable tax credit you must be:
- A resident investor of Manitoba or an eligible corporation looking to invest up to $60,000 per year or
- An approved enterprise with net and gross assets of $10,000 and $25 million respectively and no more than 200 employees (with at least 25% of them residing in Manitoba)
You can claim 45% in tax credit on a maximum annual investment of $60,000. These shares must have been issued to you after June 12, 2014 and before 2021. The Manitoba government will issue a T2CEDTC (MAN) receipt to you for your investment.
Note: The tax credit rate and the maximum eligible investment for eligible shares issued before June 12, 2014 and after are different. Visit the CRA website for more information on this aspect of the Manitoba community enterprise development tax credit.
If you have unused amounts from previous years, these amounts are non-refundable and can only be used to reduce your Manitoba tax payable for that year. Unused amounts can be carried forward for up to 10 years so that you can claim them on a future return.
Where do I claim this?
Follow these steps in H&R Block's 2018 tax software:
Before you begin, make sure you tell us that you lived in Manitoba on December 31, 2018.
- Under the PREPARE tab, click IN THIS SECTION icon.
- In the Investments box, click the Add This Topic button.
- Click the PENSION PLANS AND INVESTMENTS icon. You’ll find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Manitoba community enterprise development tax credit (T1256).
- When you arrive at the page for the Manitoba community enterprise development (CED) tax credit, enter your information into the tax software.