If you’re a resident of Manitoba and you invested in eligible community enterprise development projects or in community development investment pools in 2016 (or in the first 60 days of 2017), the government of Manitoba will issue you a T2CEDTC (MAN.) slip. Using this slip, you’ll be able to claim the Manitoba community enterprise development tax credit as long as you meet the eligibility requirements.
To qualify for this refundable tax credit you must be:
- A resident investor of Manitoba or an eligible corporation with the means 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)
Note: If you have unused amounts from previous years, they 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.
The tax credit rate and the maximum eligible investment for eligible shares issued before 2016 and after 2015 are different. Visit the CRA website for more information on this aspect of the Manitoba community enterprise development tax credit.
Where do I claim this?
Follow these steps in H&R Block's tax software to file your 2016 taxes:
Before you begin, make sure you tell us that you lived in MANITOBA on December 31, 2016.
- Under the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I had investments and/or investment income, or I bought and/or sold property.
- 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.