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Rental Housing Construction Tax Credit

Rental Housing Construction Tax Credit Description

The Rental Housing Construction (RHC) Tax Credit is a new financial incentive offered to private and non-profit housing developers (including non-profit co-operatives) to address the persistent shortage of rental housing in Manitoba communities.  Landlords who construct new rental housing are eligible and can offset a proportion of their capital investment through a tax credit equal to eight percent (8%) of the capital cost of new rental housing construction. To receive the tax credit, a minimum of ten percent (10%) of units constructed must have affordable rents.

For more information about the program please read the Rental Housing Construction Tax Credit Program Guidelines.

Rental Housing Construction Tax Credit Benefits

  • The Rental Housing Construction tax credit is equal to eight percent (8%) of the capital cost of the rental housing project, to a maximum of $12,000 per residential unit.
  • A “residential unit” means a residential dwelling unit that has its own keyed entry door, contains a bathroom and a kitchen or kitchenette and is usually rented or leased for a period of not less than one month.
  • RHC tax credit will be claimable by filing an income tax return with the Canada Revenue Agency.
  • Eligible projects will receive the RHC tax credit when they become available for rent and have met the affordable housing criteria.
  • Eligible non-profit and non-profit co-operative projects will receive a fully refundable tax credit in the year the tax credit is earned, as qualifying units are rented.
  • Eligible for-profit projects will receive a non-refundable tax credit, claimable over a minimum of five (5) years and capped based on the landlord’s Manitoba income tax.

Eligibility

  • Landlords must be residents of Manitoba or have a permanent business in Manitoba.
  • Housing can be either for-profit, not-for-profit, or non-profit housing co-operatives.
  • Projects must include the construction of five (5) or more new residential rental units.

Other Requirements

 

Examples of what your monthly rent may be under the Affordable Housing Rental Program:

Example #1:

  • If you are a family with two (2) dependent children (one (1) boy & one (1) girl)
    • You would be eligible for three (3) bedrooms*
    • Your location is in Steinbach
    • Your total yearly combined household income is $50,000.00 before taxes
  • Your monthly Affordable rent would be $1,097.00 per month where utilities are included in the rent or $954.00 per month where the utilities are not included in the rent and billed separately.

Example #2:

  • If you are a senior couple who are both 55 years of age or over
    • You would be eligible for one (1) bedroom*
    • Your location is in The Pas
    • Your total yearly income is $35,000.00 before taxes
  • Your monthly Affordable rent would be $643.00 per month where utilities are included in the rent or $560.00 per month where the utilities are not included in the rent and billed separately.

* How are the number bedrooms I may be eligible for determined?

The National Occupancy Standards are our guidelines. These standards set the following requirements: 

  • Not less than one and not more than two persons may occupy a single bedroom.
  • Parents and children do not use the same bedroom.
  • Single persons 18 and over have a separate bedroom.
  • Children five and over do not share a bedroom with another person of the opposite sex.

How to Apply

  1. Read the Rental Housing Construction Tax Credit Program Guidelines (PDF)

  2. Download and complete the following forms:

  3. For a Letter of Initial Eligibility

    For a Certificate of Eligibility

    For a Certificate of Continuing Eligibility

  4. Submit completed applications to:

    • Manitoba Housing
      Housing Delivery Branch (Rental Housing Construction Tax Credit)
      200 – 352 Donald Street
      Winnipeg, Manitoba
      R3B 2H8
  5. For detailed information on the program please contact us at:

 

 

 


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