Tax credit boost will help stimulate investment, growth of young companies, Manitoba says | CBC News
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Manitoba is hoping to make it easier for small business startups to tap into investment funding by boosting the venture capital tax credit from $22 million to $30 million.
It’s also lowering the minimum amount needed to invest in a company in order to claim the credit.
Innovation and New Technology Minister Mike Moroz believes the changes to the small business venture capital tax credit will create “a huge influx in interest” in new investment.
“People have been sitting on the sidelines a little bit. The rules have been challenging for some potential investors,” he said at a news conference on Thursday in downtown Winnipeg.
The small business venture capital tax credit lets early-stage businesses raise capital by giving investors a non-refundable provincial tax credit of up to 45 per cent.
The maximum credit in a calendar year is $225,000, or $120,000 in a tax year, the tax credit website says. Unused tax credits can be carried forward up to 10 years or back for three years.
Under the newly announced changes, the minimum qualifying investment for a tax credit is being lowered to $5,000 from $10,000, beginning in April.
Attracting more investment will allow new businesses to accelerate their growth, the province said in a news release.
“The excitement that we’ve seen over the course of the last number of months as we’ve talked through these changes has been incredible,” Moroz said.
“My firm belief is that this really represents new people coming to the line to step up and invest in companies and in the future of the province.”
Investment in Manitoba companies has risen substantially from four companies and $4 million in 2024 to seven companies and $127 million in 2025, according to the Canadian Venture Capital and Private Equity Association.
In addition to the newly announced changes to the small business venture capital tax credit, Manitoba will recognize simple agreements for future equity (SAFEs) as eligible investments. SAFEs are widely used in early‑stage financing across North America and will allow companies and investors to structure deals more flexibly, Moroz said.
The government is also expanding eligibility to include limited partnerships, which are often viewed as the standard structure for venture capital funds, Moroz said.