T1256-1 : Manitoba Small Business Venture Capital Tax Credit (Individuals)

What’s in this article?

 

What is this?

The Manitoba Small Business Venture Capital Tax Credit (SBVCTC) is a non-refundable tax credit for Manitoba investors who invest in emerging Manitoba businesses. Formerly known as the Community Enterprise Investment Tax Credit, the SBVCTC is a 30% tax credit for taxpayers resident in Manitoba who acquire equity capital in emerging enterprises that require larger amounts of capital than community ownership can provide.

The maximum amount of the tax credit that you can deduct against Manitoba income tax is $45,000 per tax year. For shares purchased after June 11, 2014, the maximum amount you can deduct is $67,500 per year.

We recommend carrying forward any unused credits to a future year. Unused credits can be carried forward for up to 10 years or carried back three years.

If you received an information slip T2SBVCTC (MAN), you can claim this provincial tax credit. Calculate your credit amount by entering the amount on the T2SBVCTC (MAN) slip on form T1256-1. The credit is claimed by entering the information from your T2SBVCTC (MAN) information slip onto your MB428: Manitoba Tax form which applies a credit to your provincial taxes and transfers it to your federal T1 return.

 
 

Am I eligible?

You can claim the Manitoba SBVCTC if you are a resident of Manitoba and acquired equity capital in an eligible enterprise. You must have also received a T2SBVCTC (MAN) information slip for the year.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, ensure that you told us that you lived in MANITOBA on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, you can claim your Manitoba small business venture capital tax credit for individuals by following these steps:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I had investments.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
  6. Under the RESOURCE INCOME AND CREDITS heading, click the checkbox labelled Manitoba small business venture capital tax credit for individuals (T1256-1).
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the Manitoba small business venture capital tax credit (individuals) page, enter your information into the tax software.

 

Where can I learn more?