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Manitoba has a Manufacturing Investment Tax Credit. This program targets manufacturing plant and equipment purchased for first-time use in manufacturing or processing in Manitoba. Qualified investments must have been made after March 11, 1992 and before January 1, 2018. Corporations earn a 10% tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a ten-year carry-forward and a three-year carry-back (to taxation years ending after March 11, 1992 or after April 22, 2003 for class 43.1 property). This credit is 8/10 refundable and 2/10 non-refundable with respect to qualified property acquired after June 30, 2013. It is 7/10 refundable and 3/10 non-refundable with respect to qualified property acquired earlier. This program is administered by Canada Revenue Agency on behalf of Manitoba.
In addition to the above, the Manufacturing Investment Tax Credit includes equipment under class 43.1 purchased between April 22, 2003 and December 31, 2017. 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.
An income tax election allowing taxpayers to renounce, in whole or in part, the Manufacturing Investment Tax Credit is provided.
For more information on the Manufacturing Investment Tax Credit, contact the Fiscal Research Division, Manitoba Department of Finance.
Since 1997, a refundable tax credit for film and video productions has been available, based on eligible salaries paid to Manitoba residents and qualifying non-resident employees for work performed on an eligible film or video produced in Manitoba. Since March 9, 2005, the basic rate of the credit has been 45%. This credit is scheduled to expire at the end of 2018.
Salary associated with non-resident employees cannot exceed 30% of eligible salaries paid to Manitoba residents when two or more Manitoba residents are trained for each non-resident employee; or 10% if only one Manitoba resident is trained.
A corporation that produces three eligible films in two years earns an additional 10% frequent-filming bonus on eligible salaries paid with respect to the third qualifying production.
A 5% Manitoba producer bonus applies based on eligible salaries where a Manitoba resident receives credit as a producer on an eligible film.
A 5% rural and northern bonus applies on eligible salaries paid for work performed in Manitoba on productions where a permanent establishment of the applicant corporation is located, and 50% of principal photography days took place, at least 35km from Winnipeg.
With the frequent-filming bonus, producer bonus and rural and northern bonus, a film that meets all program criteria may now earn a maximum 65% credit on eligible salaries.
Starting with productions that commence principal photography after March 2010, production companies are able to elect to claim either the film tax credit based on eligible labour costs (described above), or a 30% tax credit based on production costs incurred and paid, for labour, goods, and services provided in Manitoba that are directly attributable to the production of an eligible film. With respect to film or video productions started after April 17, 2012, such production costs can also include accommodation costs incurred and paid up to $250 per night per unit, as eligible tangible property expenditures.
The following have been in effect since March 24, 2010:
The tax credit is processed as part of a qualifying company's annual income tax return and administered by the Canada Revenue Agency. Tax certificates are provided by Manitoba Film and Music who ensure the production is an eligible film, the applicant is an eligible corporation, and that the applicant's estimate of the tax credit is reasonable.
For more information on the Film and Video Production Tax Credit contact:
This refundable corporation income tax credit is for companies that develop and produce eligible interactive digital media projects in Manitoba. The tax credit is equal to 40% of the remuneration paid to Manitobans on eligible projects approved by the Department of Jobs & the Economy. The maximum tax credit on an eligible project is $500,000. This credit is scheduled to expire at the end of 2019.
Budget 2016 announced a review of this credit to consider enhanced eligibility criteria for larger digital media companies that establish a significant job-creating presence in Manitoba.
A qualifying company must be a taxable Canadian corporation with a permanent establishment in Manitoba. The tax credit is processed as part of a qualifying company’s annual income tax return and administered by the Canada Revenue Agency.
The following changes are effective for certificates of eligibility and tax credit certificates issued after March 23, 2010:
For projects that are issued an eligibility certificate after 2011 and commence production after 2012, the following enhancements apply:
For more information on the Interactive Digital Media Tax Credit contact:
Business Development Manager, Interactive Digital Media
Manitoba Jobs and the Economy
1030-259 Portage Avenue
Winnipeg, Manitoba CANADA
To assist the development of the book publishing industry in Manitoba, the refundable Book Publishing Tax Credit was introduced in 2008, equal to 40% of eligible Manitoba labour costs. Eligible labour costs include non-refundable author advances; and remuneration for activities carried out in Manitoba, including: salaries for editing, design and project management; fees to freelancers for editing, design and research; artwork; development of prototype; and set-up and typesetting. 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, must have a permanent establishment or be resident in Manitoba, must pay at least 25% of its wages and salaries to employees who are Manitoba residents, and must have recently published at least two qualifying books.
A qualifying book is a new, non-periodical publication that is Canadian-authored and is categorized as fiction, non-fiction, poetry, biography or children’s. A book eligible for a Book Publishing Tax Credit must be a qualifying book which is published before 2018. Eligible labour costs must also be incurred and paid in Manitoba by the publisher on or before December 31st, 2017.
To promote environmental sustainability in this industry, an additional bonus equal to 15% of the Manitoba printing costs can be earned by the publisher if an eligible book is printed on paper with a minimum of 30% recycled content. Eligible printing costs must be incurred and paid in the year of publication of the eligible book or in the immediately following year.
This income tax credit is administered by the Canada Revenue Agency on behalf of Manitoba.
For more information on the Book Publishing Tax Credit contact:
Culture, Heritage and Recreation Programs
Manitoba Tourism, Culture, Heritage, Sport and Consumer Protection
Manitoba printers are eligible for a 15% refundable Cultural Industries Printing Tax Credit on eligible printing costs, incurred on or after April 13, 2011, in the production of eligible books. This credit is scheduled to expire at the end of 2018.
Qualifying costs are amounts invoiced by the Manitoba printer to the publisher of a book for printing, assembly and binding services, performed in Manitoba on a hardcover or paperback Canadian-authored non-periodical publication categorized as fiction, non-fiction, poetry, drama, biography, or children’s book.
The maximum credit per book title is capped at $30,000. To be eligible, at least 90% of a book must be new material that has not been previously published; if the book contains pictures and is not a children's book, the ratio of the amount of text to pictures in the book must be at least 65%; and the printer must demonstrate that the book is for sale through an established distributor.
The publisher of the eligible book may be carrying on business anywhere in Canada but must not be related to the Manitoba printer.
A worksheet which will assist a printer in determining the eligibility of a book is available.
For more information, contact the Fiscal Research Division, Manitoba Department of Finance.
Budget 2012 introduced the refundable Data Processing Centre Investment Tax Credit equal to 4.5% of the capital cost of new qualified property that is a building, and 8.0% of the cost of qualified machinery or equipment. (With respect to the capital cost of new, qualified property purchased, leased, and made available for use before July 1, 2013: the credit equals 4% on data processing centre buildings and 7% on data processing centre equipment.) Also eligible are new data processing centres built in Manitoba and leased to another Manitoba company that is not affiliated with the lessor. In addition, taxpayers eligible for the credit now include data processing centres built using a business structure other than a corporation. Property purchased or leased to replace or improve property that previously qualified for the tax credit is also eligible.
Budget 2013 introduced the Data Processing Equipment Investment Tax Credit for taxable Canadian corporations not primarily engaged in data processing in Manitoba, but with a permanent establishment in Manitoba, that acquire at least $10 million of incremental eligible data processing equipment in a taxation year. Such corporations may qualify for an 8% refundable investment tax credit on a narrower range of property, including Class 46 and Class 50 data processing equipment purchased, leased, and made available for use in Manitoba after April 16, 2013.
These are refundable corporation income tax credits available to corporations with a permanent establishment in Manitoba. Both these credits are scheduled to expire at the end of 2018. The purpose of these credits is to position Manitoba as a location for investment in high-technology data processing.
For more information on Data Processing Investment Tax Credits, contact the Fiscal Research Division, Manitoba Department of Finance.
Budget 2013 introduced a tax credit equal to 8% of the capital cost of new rental housing construction in Manitoba. The credit is intended to offset Manitoba sales tax payable by landlords on new rental housing construction; it will stimulate the construction of rental housing and increase the quantity of affordable rental housing units. Eligible landlords must be residents of Manitoba or have a permanent establishment in Manitoba, and can operate on either a for-profit or not-for-profit basis – including rental housing co-operatives. This credit is scheduled to expire at the end of 2019.
Eligible projects include the construction of five or more new residential rental units. New rental units include existing non-residential properties being converted into residential units, in which case capital costs related to the acquisition and conversion of the property are eligible for the credit. The maximum credit is set at $12,000 per eligible rental unit. At least 10% of the units on an eligible project must be affordable housing units for the unit type.
The Rental Housing Construction Tax Credit will be claimable by filing an income tax return with the Canada Revenue Agency. The credit is earned on a project when it becomes available for rental and the affordable housing criteria are met. Eligible not-for-profit projects will receive a fully refundable tax credit in the year in which the credit is earned, as qualifying units are rented. The tax credit on for-profit projects will be non-refundable, claimable over a minimum of five years, and capped annually by the amount of Manitoba income tax payable by the landlord. For-profit and not-for-profit landlords will be required to file an annual attestation for five years identifying the affordable units, the monthly rents assessed on those units, and the total new rental units constructed.
For more information on the Rental Housing Construction Tax Credit, contact:
Housing Delivery Branch, Manitoba Housing & Community Development
204-945-5566 or 1-866-689-5566
The Odour Control Tax Credit is a nonrefundable* 10% corporation income tax credit for businesses that invest in capital to control nuisance odours that arise or may arise from the use or production of organic waste. Eligible expenditures include acquired capital property that significantly prevents, reduces, or eliminates nuisance odours.
The credit applies to expenditures made on or before December 31, 2017. Credits earned but unused in a given year may be carried back three years to taxation years that end after April 19, 2004 and carried forward for 10 years.
*Effective with respect to qualifying property acquired after 2012, the Odour Control Tax Credit is fully refundable to agricultural corporations. (On property acquired before 2013, agricultural corporations were eligible for a refundable part of the Odour Control Tax Credit. The maximum refund that a corporation could claim was the lesser of the portion of the tax credit that exceeded the credit claimed in the current year and the property tax paid, net of government assistance received or receivable, on Manitoba farmland used by a corporation for farming.)
An Income tax election allowing taxpayers to renounce, in whole or in part, the Odour Control Tax Credit is provided.
This income tax credit is administered by the Canada Revenue Agency on behalf of Manitoba.
For information about eligibility for this credit on the part of individuals carrying on the business of farming as a sole proprietor or as a general partner, please go to the personal tax credits page.
For more information on the Odour Control Tax Credit, contact the Fiscal Research Division, Manitoba Department of Finance.
Agricultural producers are eligible for a refundable income tax credit, the Nutrient Management Tax Credit, to facilitate meeting new requirements for water quality protection under The Environment Act.
Eligible entities are agribusiness corporations with a permanent establishment in Manitoba and unincorporated Manitoba-resident individuals engaged in farming, as well as agricultural operations owned by a partnership (in which case the credit is allocated among Manitoba-resident partners).
The credit is equal to 10% of the capital cost of prescribed nutrient management equipment, net of any government assistance received or receivable for it. The assets must be acquired and available for use after April 17, 2012. This credit is scheduled to expire at the end of 2018.
Qualifying investments include: solid-liquid separation systems, anaerobic digesters, gravity settling tanks, manure treatment systems, and manure composting facilities; also included are storage tanks suitable for winter manure storage by operators with fewer than 300 animal units.
For more information contact the Fiscal Research Division, Manitoba Department of Finance.
This program targets scientific research and experimental development (as defined for federal purposes) carried on in Manitoba. Corporations earn a 20% tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a 20-year carry-forward (previously 10 years) and a three-year carry-back. This income tax credit is administered by the Canada Revenue Agency on behalf of Manitoba.
The credit is refundable for eligible expenditures incurred after 2009 by a corporation with a permanent establishment in Manitoba and where the research and experimental development is carried on in Manitoba under an eligible contract with a qualifying research institute.
Manitoba Budget 2010 extended refundability of this tax credit to in-house R & D expenditures (i.e., R & D not undertaken under contract with an institute in Manitoba) as follows:
The 2013 federal budget removed capital expenditures from the federal investment tax credit base, but Manitoba Budget 2013 protected the Manitoba credit from this federal tax cutting measure. The federal budget also reduced to 80% the claimable portion of contract payments; Manitoba retained full eligibility for contract payments to eligible institutes only. Manitoba reflected the further federal change reducing the prescribed proxy amount to recognize overhead costs attributable to eligible projects, from 65% to 60% of direct labour costs in 2013, and to 55% starting in 2014.
An income tax election allowing taxpayers to renounce, in whole or in part, the Research and Development Tax Credit is provided.
For more information on the Manitoba Research and Development Tax Credit,contact the Fiscal Research Division, Manitoba Department of Finance.
The federal Income Tax Act permits a 100% deduction of SR&ED qualified expenditures from income. All qualifying expenditures form a "pool" which is increased by SR&ED expenditures and diminished by government or non-government assistance received in relation to these activities. Current and capital expenditures incurred in Canada, and current expenditures incurred outside Canada, are added to the pool.
Expenditures incurred in Canada may be deducted in the year incurred or carried forward indefinitely. Current expenditures incurred outside Canada can only be deducted in the year incurred. For purposes of calculating the amount of the SR&ED deduction in a given year, the "pool" of qualified expenditures is adjusted yearly and includes all prior years and current year expenses, less all assistance received or receivable for current or previous years in that year, less all research and development related tax credits claimed in previous years.
Provincial research and development ("R&D") credits reduce the SR&ED pool in the year received while federal tax credits reduce the pool in the following year. If the balance of the SR&ED pool is negative, the excess is treated as income for the year.
SUMMARY OF FEDERAL SR&ED TAX CREDITS
|Individuals & Unincorporated Businesses||15%||None||None|
|Canadian Controlled Private Corporations:
Unused tax credits are eligible for a carry-forward of up to twenty years and a carry-back of up to three years.
When a corporation is not taxable in a given year and wishes to maximize the refundable federal tax credit, it may choose to renounce its right to the provincial tax credit.
For more information about the federal SR&ED tax incentives program, contact the Canada Revenue Agency at 1-800-959-8281 or visit The Canada Revenue Agency Web site.
To grow the cooperative sector, a partly refundable tax credit is available for cooperatives and credit unions that make financial contributions towards cooperative development in Manitoba. Contributions of up to $50,000 made after September 2010 to a fund managed by the Manitoba Cooperative Association are used for the provision of technical assistance, the coordination of existing support and services, and the provision of small grants and strategic investments. All Manitoba's 400 credit unions and cooperatives qualify for this credit.
The schedule of refundable and non-refundable incentives is as follows:
For more information, contact the Fiscal Research Division, Manitoba Department of Finance.
The Paid Work Experience family of tax credits provides qualified employers with a percentage of the wages and salaries paid to certain types of trainee employees and recent graduates working in Manitoba. These wages and salaries are calculated net of other government funding for that remuneration. Eligible employers include taxable corporations and exempt corporate entities (such as not-for-profit agencies, Manitoba Crown entities, municipalities, universities, schools, and hospitals), which must claim the fully refundable credit in the company financial year in which it is earned. In addition, unincorporated employers can claim the refundable credit on their individual income tax return in the tax year in which it is earned. All components of this tax credit are fully refundable for all types of eligible employers.
The Co-op Student Hiring Incentive and high school apprentice component has been significantly enhanced and expanded to help promote more paid work and on-the-job training opportunities for students. Eligibility now includes employers who hire a student in a wide range of registered high school vocational programs that are not connected with the apprenticeship system. These include programs in areas such as health care, child care, business and hospitality. The new stream of support for high-school co-op students provides a refundable tax credit worth 25% of eligible wages and salaries, up to a lifetime maximum of $5,000 per student.
The benefit for high-school apprentices has been enhanced to 25% from 15% of wages and salaries, to a cap of $5,000 per apprentice per year.
The benefit rate for post-secondary co-op students has been enhanced from 10% to 15%of wages and salaries, up to a maximum of $5,000 per student. The benefit rate for co-op graduates has been enhanced from 5% to 15% of wages and salaries, up to a maximum of $2,500 per graduate for the first two years of employment.
For general information on the Paid Work Experience family of tax credits, contact:
Manitoba Tax Assistance Office
Winnipeg, MB R3C 3R6
Phone: 204-948-2115 or 1-800-782-0771 (in Manitoba)< br /> Fax: 204-948-2263
New High-School Vocational Component
For information, contact:
Co-operative Education Components
The Paid Work Experience Tax Credit includes two components to promote co-operative education, administered by Education and Advanced Learning, by means of credits to employers hiring students or recent graduates of a recognized post-secondary program of co-operative education anywhere in Canada or the world.
For more information on the co-operative education components of PWETC, please go to the Co-operative Education page. If you are a co-op education provider, contact:
Advanced Learning Division
608-330 Portage Avenue
Winnipeg, MB R3C 0C4
PWETC includes three components to promote apprenticeship, administered by the Apprenticeship Branch of Jobs and the Economy. These components provide employers with credits for hiring apprentices or recently certified journeypersons for work performed in Manitoba. The credit is claimed on the income tax return in the company financial year in which it was earned. Eligible trades include both Red Seal and non-Red-Seal trades. Budgets 2012 and 2014 announced significant enhancements of the tax credit rates and maximums for these three components, and their duration has been extended indefinitely. Please see the table below for the existing and newly announced rates and conditions.
Effective with each employer’s financial year ending after December 31, 2014, a common 15% credit on wages and salaries to a maximum of $5,000 per apprentice per year will be available for hiring apprentices through all levels of apprenticeship and for hiring journeypersons for the first two years. The rural and northern bonus for hiring Level 1 and 2 apprentices will continue to provide a total 20% credit on wages and salaries, with a cap of $5,000 per year per apprentice. All hiring incentives are net of other government assistance received or payable, including, where applicable, the federal Apprenticeship Job Creation Tax Credit.
Improvements to Apprenticeship and Journeyperson Tax Credits
Level 1 & 2
Level 1 & 2
Level 3, 4, & 5
|Completed level or certification before 2013||Tax Credit||
|Completed level or certification before 2015||Tax Credit||
|Effective January 1, 2015||Tax Credit||
Employers will continue to receive their refundable tax credit when they file their personal or corporate income tax return. A pre-approval process will no longer be required.
The total maximum tax credit is $35,000 for an employer who hires an apprentice through five levels and for two years after certification as a journeyperson.
1010-401 York Avenue
Winnipeg, MB R3C 0P8
Toll-Free: 1-877-978-7233 (1-877-97-TRADE)
Commencing April 13, 2011, corporations that partner with charitable organizations to establish new social enterprises in Manitoba are eligible for a non-refundable 30% corporation income tax credit, in addition to the deduction for their corporate donation.
In a given year, a corporation can earn a maximum Neighbourhoods Alive! Tax Credit of $15,000, based on a cumulative minimum of $50,000 in donations to a qualifying registered charity to develop, manage and operate the new social enterprise. The monetary donation must be made over the course of the first four taxation years of the social enterprise and must be accompanied by the provision of in-kind services during years two through five of the social enterprise.
Large up-front donations of up to $200,000 can be used to earn the $15,000 maximum tax credit in years two through five, as long as the in-kind contributions are made in each of those years. Smaller annual donations can be made over multiple years and the cumulative total can be used to reach the $50,000 minimum donation threshold, as long as the donations are made in the first four taxation years of the social enterprise and the in-kind services are provided.
The newly created social enterprise must be fully owned and controlled by a charitable organization in Manitoba and have a charitable purpose that matches that of the charity. In addition, the social enterprise must have a mandate that includes hiring hard-to-employ Manitobans and at least 25% of its employees must have qualified as facing multiple barriers to employment when they were hired.
Tax credits earned but unused by a corporation in a given year can be carried back up to three years to a financial year that ends no earlier than April 12, 2011, and any remaining credits can be carried forward up to ten years.
For more information on the Neighbourhoods Alive! Tax Credit , contact Fiscal Research Division, Manitoba Department of Finance.
The Community Enterprise Development Tax Credit is intended to encourage Manitoba-resident investors and corporations to invest in specific community enterprises or in community development investment pools in their communities. The aim is to assist community-based enterprise development projects raise local equity capital.
With respect to eligible shares issued before 2015:
The Community Enterprise Development Tax Credit has been extended to 2020. Effective for eligible shares issued after 2014:
These measures will allow more local investors to promote the creation of good jobs at the community level by participating as owners in their regional enterprises. This includes lower-income investors and small businesses benefiting from Manitoba’s 0% corporate income tax rate.
Investments eligible for a Community Enterprise Development Tax Credit (CEDTC) with respect to the 2014 and following tax years include shares purchased during the first 60 days of the following year. This means that eligible shares purchased after December 31, 2014 and no later than March 1, 2015 may be claimed for the purposes of this credit in either 2014 or 2015.
For more information, contact Manitoba Agriculture, Food and Rural Development.
For more information, contact:
Value-Added & Rural Economic Advancement Branch
Manitoba Agriculture, Food and Rural Development
The Small Business Venture Capital Tax Credit promotes, among Manitoba-resident individuals and companies, the acquisition of equity capital in emerging enterprises that require larger amounts of capital than community ownership can provide. The tax credit is non-refundable and offsets Manitoba income tax otherwise payable. Credits earned in a year but unused can be carried back three years or carried forward ten years to offset Manitoba income tax in any of those years.
Budget 2016 extends this credit to December 31, 2019.
Eligible shares must be acquired directly by the investor. The minimum investment by an investor is $20,000. The maximum investment an investor can make in a qualifying corporation is $450,000. The minimum issuance by an approved qualifying corporation is $100,000. The maximum tax savings claimable under the tax credit in a year is $10 million.
With respect to eligible shares issued before June 12, 2014:
With respect to eligible shares issued on or after June 12, 2014:
With respect to eligible shares issued on or after May 1, 2015:
For more information, contact:
This refundable tax credit promotes the production and purchase of machinery and equipment used to generate renewable energy in Manitoba. Geothermal heating equipment is eligible for a maximum 15% credit and solar thermal heating equipment is eligible for a 10% credit. Biomass fuel energy equipment, installed in Manitoba and used in a business, has become eligible for a 15% credit.
For details, please go to the Green Energy Equipment Tax Credit page.