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Workforce: Tax Incentives that Consider Labour Costs

Education: Attainment Faculty Division Customized Incentives Training

Co-op Education and Apprenticeship Tax Credits

• Co-operative Education Tax Credit --  Employers who provide work placements for students enrolled in post-secondary co-operative education programs may claim a 10% credit against Manitoba corporate income tax of up to $1,000 for each student work placement.

• Co-operative Graduates Hiring Incentive — Employers who hire and retain in full-time employment, students who graduate from a recognized post-secondary co-operative education program, may claim 5% of wages and salaries paid to the graduate in each of the first two full years of employment, to a maximum of $2,500 for each year, where the employment commences within 18 months of graduation.

• Journeypersons Hiring Incentive -- Employers may earn a refundable income tax credit equal to 5 per cent, up to $2,500, of wages and salaries paid to a journeyperson (net of other government assistance) for each of the first two twelve-month periods of permanent, full-time employment for work in their certified trade in Manitoba. There is no limit on the number of journeypersons an employer may hire to earn the credit.

• Advanced-Level Apprentices Hiring Incentive – Employers may earn a refundable income tax credit equal to 5% of wages paid to an advanced-level apprentice for work performed in Manitoba, (net of other government assistance). The maximum credit for one apprentice completing one level is $2,500. There is no limit on the number of apprentices in respect of whom the employer can apply.

Manitoba Research and Development Tax Credit – A non-refundable tax credit of up to 20% of qualified R&D expenditures (including R&D labour costs) against Manitoba corporate income tax payable. The Manitoba R&D Tax Credit is administered by the 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 2009 Manitoba Budget announced that for eligible expenses incurred after 2009, related to R&D undertaken under contract with a qualifying Manitoba research institute, the provincial credit will become refundable.

Manitoba Film and Video Production Tax Credit -- A refundable corporate income tax credit of 45% of wages paid to Manitoba residents and deemed residents. Deemed residents must supervise the training of at least one Manitoba resident. In combination with incentives to encourage frequent filming in Manitoba and filming in rural and Northern locations, as well as a 5% Manitoba producer bonus, a film project may be eligible for up to a 65% credit on eligible salaries.

Interactive Digital Media Tax Credit -- a refundable corporate income tax credit for companies that develop and produce interactive digital media projects in Manitoba. The tax credit is equal to 40% of remuneration paid to Manitobans on eligible projects to a maximum of $500,000. Projects that begin prototyping and product development after April 9, 2008 and before 2011 will qualify for the credit. A qualifying company must be a taxable Canadian corporation with a permanent establishment in Manitoba.

Book Publishing Tax Credit -- equal to 40% of eligible Manitoba labour costs: non-refundable author advances and remuneration for eligible activities carried out in Manitoba. The maximum tax credit claimable by a publisher is $100,000 per year. An eligible publisher must be engaged primarily in the business of publishing books, with a permanent establishment in Manitoba, must pay at least 25% of its wages and salaries to Manitoba residents, and must have recently published at least two qualifying books.

For more information on the above tax credit programs, contact Federal-Provincial Relations and Research Division, Manitoba Department of Finance.