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Government: Manufacturing Investment Tax Credit


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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, 2021.

Corporations earn a 10% tax credit (for eligible property acquired on or before April 11th, 2017) or 9% tax credit (for eligible property acquired on or after April 12th, 2017) 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 8/9 refundable and 1/9 non-refundable with respect to qualified property acquired on or after April 12th, 2017. This credit is 8/10 refundable and 2/10 non-refundable with respect to qualified property acquired after June 30th, 2013 and before April 12, 2017. It is 7/10 refundable and 3/10 non-refundable with respect to qualified property acquired on or before June 30th, 2013. 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.

Green Energy Equipment Tax Credit

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.

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