2012-2 Co-operative development tax credit
Whereas: There are more than 410 co-operatives, credit unions, and caisses populaires in Manitoba, comprising of over 800,000 memberships and almost $18 billion in assets. Co-operatives are more sustainable given their collective ownership and community commitment; 62 per cent of new co-operatives are still operating after five years, compared with 35 per cent for other new businesses. After 10 years, the figures are 44 per cent and 20 per cent respectively.
Whereas: Co-operatives are committed to co-operating with and supporting other co-operatives, strong co-operative economies occur where strong co-operative sector infrastructure exists, and where co-operatives invest in co-operative development.
Whereas: There currently are insufficient resources to support sector-led co-operative development in Manitoba, and to build the required networks and associations to build a strong co-operative community.
Whereas: The Province of Manitoba has committed to co-operative development through the Co-operative Visioning Strategy.
Whereas: Co-operatives create economic democracy, root ownership locally, distribute profits equitably, and often create jobs and services in communities where they are otherwise lacking.
Whereas: The Province of Manitoba has implemented a Co-operative Development Tax Credit for co-operatives in Manitoba who contribute toward co-operative development as carried out through the Manitoba Co-operative Association. For which total contributions were capped at $250,000 per year for 5 years and implemented a sliding scale which provides a 33% corporate income tax credit for large contributions, a 75% refundable tax credit on contributions of less than $1000, and various tiers of credit in between.
Be It Resolved That:
CCEDNet Manitoba urge the Province of Manitoba to continue to support education of all co-operatives on the use of this tax credit and its multiple benefits for the broader community.