Neighbourhoods Alive! Tax Credit (Manitoba)

To promote community economic development and to assist Manitobans facing barriers to employment, the 30% Neighbourhoods Alive! Tax Credit is introduced. This unique and innovative tax credit encourages corporations with a permanent establishment in Manitoba to support and work with charitable organizations to establish new social enterprises in Manitoba.

The newly created social enterprise must be fully owned and controlled by a charitable organization in Manitoba, with a charitable purpose that matches the charity, and a mandate that includes hiring hard-to-employ Manitobans facing multiple barriers to employment.

Corporate donations provided in the year prior to the establishment of the social enterprise and during the first three years of the social enterprise are eligible for the tax credit. Eligible donations must be made after April 12, 2011 and before 2020 to qualify for the tax credit.

The maximum tax credit a corporation can earn in a given year is $15,000, based on a minimum $50,000 donation made to a qualifying registered charity in the previous year. The corporation must provide in-kind services to the charity during the year to support developing, managing and operating a new social enterprise. The tax credit offsets Manitoba corporation income tax otherwise payable. Tax credits earned but unused by a contributor in a given year can be carried back up to three years, but no earlier than a tax year ending after April 12, 2011, and any remaining credits can be carried forward up to 10 years.

The full-year revenue impact is estimated at -$0.4 million.