The new Neighbourhoods Alive! Tax Credit (NA!TC) will encourage Manitoba corporations to support community groups with charitable status to establish new revenue-generating enterprises. This announcement was made by Finance Minister Rosann Wowchuk and Housing and Community Development Minister Kerri Irvin-Ross at the future site of the L’Arche Café, a new enterprise that will employ people with developmental disabilities.
“The Neighbourhoods Alive! Tax Credit is an innovative tool that promotes co-operation between community groups and corporations to create jobs for those who face employment barriers,” said Wowchuk. “This new tax credit will help community organizations advance their charitable mandates and generate new revenues at the same time.”
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.
“More and more, non-profits are using social enterprises to provide opportunities for individuals to learn and develop new skills while participating in our communities,” said Irvin-Ross. “There are many barriers to employment in traditional working environments that can be overcome with creativity and care. When people are able to work, the individual and community benefits are almost immeasurable. It’s innovation like this that really strengthens our communities.”
“The new Neighbourhoods Alive! Tax Credit will be a valuable tool for us when raising funds for our new enterprise,” said Jim Lapp, community leader with L’Arche Winnipeg, a non-profit group dedicated to the creation and growth of homes, programs and support networks for people with developmental disabilities. “We are looking forward to approaching corporate donors with this tax credit and creating new partnership opportunities.”
A recent external evaluation recommended that Neighbourhoods Alive! take additional steps to support the development of the local economy and reduce unemployment. The NA!TC provides an additional tool for neighbourhood renewal corporations and other charitable organizations to help address these issues, the ministers said.
“Many non-profits like L’Arche are taking an entrepreneurial approach to making a difference in their communities. This new tax credit is aimed at promoting that approach. It is part of the government’s strong record of providing steady and responsible tax relief for Manitobans, and promoting innovation to support job growth in Manitoba,” said Wowchuk.
More information on the Neighbourhoods Alive! Tax Credit is available online.
