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Manitoba Research and Development Tax Credit

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To encourage research and development in Manitoba, the Research and Development Tax Credit provides a 20% non-refundable tax credit applied against Manitoba corporate income tax payable. Eligible corporations must incur qualifying scientific research and development expenditures (as defined for federal income tax purposes) in Manitoba.

The Manitoba R&D Tax Credit is administered by Canada Revenue Agency, and firms eligible for the provincial credit will also be eligible for the federal Scientific Research and Experimental Development Tax Credit, which may be refundable in certain circumstances.
The amount deductible against Manitoba income tax will be lesser of the Manitoba R&D Tax Credit and the Manitoba Corporate Income Tax otherwise payable. Any unused credit will be available for carry-forward for up to ten years, and carry-back for up to three years.

The Manitoba R&D Tax Credit will reduce qualified expenditures for the purposes of the Federal Income Tax Act, including the refundable Investment Tax Credit.  Where a corporation does not anticipate having taxable income and prefers to make use of the refundable Federal tax credit provisions, it may renounce its rights to the provincial credit (in whole or in part) in order to maximize its Federal refund.

The 2009 Manitoba Budget announced that the Manitoba R&D Tax Credit will be made refundable after 2009 for Manitoba-based corporations that incur eligible R&D expenditures under an eligible contract with a qualifying research institute in Manitoba.
The refundable credit will benefit qualifying corporations that conduct R&D in priority areas involving biotechnologies and new technologies in such fields as medical science, the environment, agriculture, information, communications and computers, as prescribed.

For more information on the Manitoba Research and Development Tax Credit, please visit the

Manitoba Department of Finance at: www.gov.mb.ca/finance/ccredits.html  

Or visit Canada Revenue Agency at: www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html