Co-op Development Tax Credit
Whereas: There are more than 410 cooperatives, credit unions, and caisses populaires in Manitoba, comprising of over 800,000 memberships and almost $10 billion in assets. Co-operatives are more sustainable given their collective ownership and community commitment; 62 per cent of new co-ops 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 cooperating with and supporting other cooperatives, strong cooperative economies occur where strong co-operative sector infrastructure exists, and where co-ops invest in co-op development.
Whereas: There currently are insufficient resources to support sector-led co-op development in Manitoba, and to build the required networks and associations to build a strong co-op community.
Whereas: The Province of Manitoba has committed to co-op development through the Co-op Visioning Strategy.
Whereas: Cooperatives create economic democracy, root ownership locally, distribute profits equitably, and often create jobs and services in communities where they are otherwise lacking.
Be It Resolved That:
CCEDNet Manitoba urge the Province of Manitoba to implement a Co-op Development Tax Credit for co-ops in Manitoba who contribute toward co-op development as carried out through the Manitoba Cooperative Association. Total contributions will be capped at $250,000 per year for 5 years. A sliding scale will provide 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.