The Selinger government introduced its omnibus budget implementation bill today, highlighting new tax credits for Manitoba businesses.
The province says the proposed Employee Share Purchase Tax Credit would offer new business owners, including current employees, support to own a portion of a business.
The province says the 45 per cent tax credit would support business growth and avoid business closures. The proposed credit would also support the development of worker co-operatives and employee participation in their employer's business.
"The new Employee Share Purchase Tax Credit will support business expansion and help avoid small businesses closing down and putting Manitobans out of work when an owner retires, thereby keeping good jobs in Manitoba," Jobs and Economy Minister Theresa Oswald said in a statement.
Finance Minister Jennifer Howard said the budget implementation and tax statutes amendment act (BITSA) would also provide measures that would protect taxpayers from misleading promises from tax discounters, who may knowingly offer larger tax returns that are later reduced, leaving the taxpayer to pay back the difference. The legislative amendments would provide the province with the authority to withhold or withdraw the licences of tax discounters who knowingly or repeatedly file inaccurate tax credit claims.
The province says the proposed BITSA bill would also support other government initiatives already-announced in its spring budget. They include:
- enhancing the Small Business Venture Capital Tax Credit and the Community Enterprise Development Tax Credit to 45 per cent from 30 per cent along with other tax credit improvements;
- supporting the hiring of apprentices and journeypeople with an improved tax credit that offers more financial incentives with less red tape for employers;
- renewing other economic tax credits that were set to expire this year including the Manufacturing Investment Tax Credit; and
- putting into law annual reporting requirements for government's spending in infrastructure, including a requirement that spending commitments carry forward to future years in the five-year, $5.5 billion infrastructure plan.