TaxTips.ca - Neighbourhoods Alive! Tax Credit for Corporations

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Manitoba -> Neighbourhoods Alive! Tax Credit

Neighbourhoods Alive! Tax Credit for Corporations

The following information has been reproduced from the NA! Tax Credit document provided by the government of Manitoba.

The 30 per cent NA!TC was introduced in Budget 2011. It provides a credit to Manitoba corporations that make a minimum $50,000 donation to an organization with charitable status for the purpose of starting a new revenue-generating enterprise or social enterprise that hires people facing barriers to employment. When the 30 per cent NA!TC is combined with existing treatment of charitable donations by corporations, the total tax savings in 2012 for donating corporations will be 57 per cent of their contribution.

The tax credit is available to corporations in Manitoba that participate with an eligible charity to establish a social enterprise. Participating charities will be responsible for verifying the operation of a social enterprise conforms with their charitable mandate.

To receive the tax credit, the social enterprise must be newly created after April 12, 2011, be fully owned and controlled by a charitable organization in Manitoba, and hire hard to employ Manitobans facing multiple barriers to employment.

The corporation must have a permanent establishment and commit in-kind support to assist with developing, managing and operating a new social enterprise.

NA!TC receipts will be issued one year after the charitable donation is made and after the agreed to in-kind support has been provided. Eligible donations must be made after April 12, 2011, and before 2020 to qualify for the tax credit.

The tax credit offsets Manitoba corporation income tax otherwise payable.

The maximum NA!TC 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.

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. Remaining credits can be carried forward up to 10 years.

Manitoba has launched a new website to connect social enterprises to relevant provincial programs and supports. The new social enterprise web portal can be accessed at www.Manitoba.ca/business.

The Manitoba 2012 Budget announced that the Neighbourhoods Alive! Tax Credit would be amended, retroactive to April 12, 2011, as follows:

	allowing a corporation up to four years to achieve the minimum $50,000 donation threshold;
	allowing a corporation to make an up-front donation of up to $200,000 in the first year, and provide in-kind service contributions to earn the maximum credit in each of the subsequent four tax years; and
	limiting in-kind contributions to earn the credit to the first 5 years of the social enterprise.

Revised: April 17, 2012

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