The Small Business Venture Capital Tax Credit
Vermillion Growers Ltd. has received a limited time approval to issue its preferred shares under Manitoba’s Small Business Venture Capital Tax Credit (SBVCTC) program. Potential investors are encouraged to check with their legal and financial advisers as to their eligibility to receive the tax credits available to them under the SBVCTC program. Eligible investors are entitled to earn a 45% non-refundable tax credit against Manitoba taxes payable in 2020.
You can claim this non-refundable tax credit if you meet both of the following conditions:
- you are a corporation that is not a prescribed venture capital corporation or labour-sponsored venture capital corporation under Part LXVII of the federal regulations
- you directly invested a minimum of $10,000 before January 1, 2020, in Vermillion Growers
How do you know if you are an accredited investor? It’s easy!
- You qualify if: your net income before taxes was more than $200K in the past two calendar years and you expect it to be more than $200K in the next calendar year.
- You qualify if: your net income combined with your spouse was more than $300K in each of the last two calendar years and you expect your net income to be more than $300K in the next calendar year.
- You qualify if: alone, or with your spouse, you own more than $1 Million in cash and securities, after subtracting any debt related to the cash and securities.
- You qualify if: alone, or with your spouse, you have net assets worth more than $5 Million. (Your net assets are your total assets including real estate minus your debt.)
For more information on Manitoba’s SBVCTC Program, CLICK HERE!
For more information on claiming your tax credit follow this link > Claiming My Tax Credit