T1256-2: Manitoba Employee Share Purchase Tax Credit
The Manitoba employee share purchase tax credit allows current employees of an eligible corporation to buy and own a portion of the business. Employees can buy shares from their employer and receive a partially refundable tax credit of 45% if the business has a registered Employee Share Ownership Plan (ESOP).
The first $27,000 of the tax credit is fully refundable.Any unused credits can be carried forward 10 years or carried back three years.
Note: Your T1256-2: Manitoba employee share purchase tax credit form will help you calculate the refundable and non-refundable portions of this tax credit. Completing this page in H&R Block’s tax software will automatically calculate how much of the credit you can carry forward for use in the future.
If you’re filing a paper return, you’ll need to attach your T1256-2 form and ESOP receipt to your return. If you’re preparing your return online, make sure you keep all your supporting documents just in case the Canada Revenue Agency (CRA) asks to see them later.
Where do I claim this?
Follow these steps in H&R Block’s 2024 tax software :
Before you begin, make sure that you told us that you lived in Manitoba on December 31, 2024.
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On the left navigation menu, under the Credits & deductions tab, click Tax Topics.
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Select the Investment income & expenses checkbox.
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At the bottom of the page, click Add selected topics to my return.
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Manitoba employee share purchase tax credit (T1256-2), then click Continue.
- When you arrive at the page for Manitoba employee share purchase tax credit, enter your information into the tax software.
