Have you invested in emerging Manitoba businesses this year? If you did and received the T2SBVCTC (MAN) slip, you can claim the Manitoba small business venture capital tax credit (individuals) (SBVCTC). Previously known as the community enterprise investment tax credit, the SBVCTC is a non-refundable tax credit and can be claimed if you bought equity in an emerging enterprise that requires more capital than community ownership can provide.
As an eligible investor, you can earn a 45% non-refundable tax credit against your Manitoba tax payable but to qualify, you must have invested at least $20,000 during the approval period.
The credits you’ve earned for the year are shown on your T2SBVCTC slip. The maximum tax credit that you can earn is $202,500 but the maximum amount you can claim in a year is only $67,500.
If you don’t use all of your credit amount in the year, you can carry forward your unused credits for up to 10 years, or back three years. Now, do keep in mind that, the total credit you carry back to a previous year, and any credit you’ve already claimed in the year, cannot be more than:
- $45,000 for 2013 and prior years, or
- $67,500 for 2014 and future years
Tax tip: Refer to your most recent notice of assessment or reassessment for your unused credit amounts.
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 that you told us that you lived in Manitoba on December 31, 2016 tax year.
- 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 small business venture capital tax credit for individuals (T1256-1).
- When you arrive at the Manitoba small business venture capital tax credit (individuals) page, enter your information into the tax software.