A first-of-its-kind tax credit and the creation of a new development fund will enable established and successful co-ops and credit unions to help new and expanding co-ops, Housing and Community Development Minister Kerri Irvin-Ross, minister responsible for co-operative development, announced.
Starting Oct. 1, contributions to a co-operative development fund of up to $50,000 by a Manitoba co op or credit union may be eligible for a partly refundable tax credit. All of Manitoba’s more than 400 credit unions and co-ops will qualify for the credit.
“There are some great Manitoba community success stories that wouldn’t have happened without the co-op model and we want that spirit to continue,” said Irvin-Ross. “This tax credit will help existing co-ops and credit unions help other co-ops get started or grow right here in Manitoba.”
The fund, which will be managed by the Manitoba Cooperative Association, will be used to provide strategic investments, grants and technical assistance to support emerging and expanding Manitoba co-operatives and the development of the broader co-operative sector in Manitoba.
“We’re excited at the potential for this first-of-its-kind tax credit in Canada,” said Barry Gosnell, chair, Manitoba Cooperative Association. “It’s great to see the province respond so positively to our request to find ways to develop the co-op model and we think this is a sustainable way to help co-ops all across Manitoba.”
The fund will begin providing services in the new year. New initiatives will be developed based on contributions.
