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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

  • Landlords will be required to report on their affordable units annually for five years.

  • At least ten percent (10%) of the units in an eligible project must be affordable housing. This means that the rents charged are at or below the Affordable Rents for the current year and the tenants meet the Program Income Limits below:

  2017 Affordable Housing Rental Program Income Limits

Household without children $53,441
Family Household (families with children or dependants) $71,255

  2017 Affordable Housing Rental Program Rents - Includes Essential Utilities
  (heat, water and sewer)

Community
Studio
1
Bedroom
2
Bedroom
3
Bedroom
4+ 
Bedroom
How are the number of bedrooms I may be eligible for determined?*
Winnipeg and Catchment   $607 $880 $1,092 $1,182 $1,425
Southern Other Urban/ Rural Brandon $513 $723 $896 $1,097 $1,293
Dauphin $480 $638 $743 $1,097 $1,240
Portage la Prairie $458 $645 $811 $1,097 $1,240
Selkirk $503 $688 $823 $1,145 $1,240
Steinbach $552 $731 $834 $1,097 $1,240
Winkler $480 $668 $788 $1,097 $1,240
Northern Other Urban/Rural Thompson $ 552 $763 $939 $1,097 $1,240
The Pas/Flin Flon $458 $643 $833 $1,097 $1,240
Churchill $520 $620 $860 $956 $1,071
Southern Non-Market   $431 $608 $738 $985 $1,114
Northern Non-Market   $412 $608 $707 $978 $1,114

 

2018 Rents for the Rental Housing Construction Tax Credit program - Effective January 1, 2018

 

  2017 Affordable Housing Rental Program Rents - No Utilities Included

Community
Studio
1
Bedroom
2
Bedroom
3
Bedroom
4+ 
Bedroom
How are the number of bedrooms I may be eligible for determined?*

Winnipeg and Catchment

  $579 $797 $1,010 $1,039 $1,250
Southern Other Urban/ Rural Brandon $485 $640 $813 $954 $1,118
Dauphin $452 $555 $660 $954 $1,065
Portage la Prairie $430 $562 $728 $954 $1,065
Selkirk $475 $605 $740 $1,002 $1,065
Steinbach $524 $648 $752 $954 $1,065
Winkler $452 $585 $705 $954 $1,065
Northern Other Urban/Rural Thompson $524 $680 $857 $954 $1,065
The Pas/Flin Flon $430 $560 $750 $954 $1,065
Churchill Not applicable
Southern Non-Market   $403 $525 $655 $842 $939
Northern Non-Market   $384 $525 $624 $835 $939

 

2018 Rents for the Rental Housing Construction Tax Credit program - Effective January 1, 2018

* 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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