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Government: Manufacturing Investment Tax Credit

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The Manitoba Manufacturing Investment Tax Credit provides a 10% tax credit (7/10 refundable and 3/10 non-refundable) applicable against Manitoba corporate income tax payable. This credit is for new and used manufacturing buildings, machinery and equipment used directly in the manufacturing process. Qualified investments must be made after March 11, 1992 and before January 1, 2015.

The amount deductible against Manitoba income tax will be the lesser of the 10% investment tax credit or the Manitoba Corporate Income Tax otherwise payable. Unused investment credits can be carried forward up to ten years, or carried back up to three years.

The Manufacturing Investment Tax Credit also includes equipment under class 43.1 purchased between April 22, 2003 and December 31, 2015. Class 43.1 includes (for a firm's own consumption) equipment used to produce energy from renewable sources and equipment that uses energy more efficiently. Class 43.2 Assets also qualify for the credit.

This program is administered by Canada Revenue Agency on behalf of Manitoba.

Green Energy Manufacturing Tax Credit

This refundable income tax credit will be equal to 10% of the value of qualifying property produced in Manitoba and sold before 2019 for residential or commercial use in Manitoba.

Qualifying property includes equipment for wind power, solar energy, geothermal energy, hydrogen fuel cells, geothermal ground source heating systems and solar thermal heating equipment.

In the 2011 Budget, the total Green Energy Equipment Tax Credit on geothermal heating systems has been increased from 10% to 15%, effective for installations after April 12, 2011. The tax credit for Manitoba manufacturers of qualifying geothermal heat pumps will increase from 5% to 7.5%. The tax credit for purchasers of qualifying made-in-Manitoba geothermal heat pumps installed in Manitoba will also increase from 5% to 7.5%. The tax credit applicable to other eligible installation costs for geothermal heating systems installed in Manitoba will increase from 10% to 15%. The province is also examining broadening the 10% tax credit to made-in-Manitoba transformers and converters which are sold for use in Manitoba.

For more information please contact:

Manitoba Finance
Taxation, Economic and Intergovernmental Fiscal Research Division
Tel: 204-945-3757
Fax: 204-945-5051
Web: www.gov.mb.ca/finance/fedprov/index.html