Invest in Manitoba
Government: Recent Strategic Tax Incentives
Summary of Strategic Tax Incentives announced in the last Manitoba budgets.
For details about tax incentives, please visit the Manitoba Finance website.
- Small Business Income Limit: Canadian-controlled private corporations that qualify for the small business deduction pay a 0% rate of Manitoba Corporation Income Tax. This Budget increases Manitoba’s small business income limit eligible for the small business deduction from $425,000 to $450,000 on January 1, 2016.
- Co-op Education and Apprenticeship Tax Credits: Components of the Co-op Education and Apprenticeship Tax Credits allows each employer a 25% credit on wages and salaries to a maximum of $5,000 per apprentice per year per level will be applied to the hiring for work in Manitoba of all levels of apprentices and the hiring of journeypersons for their first two years. The rural and northern bonus for Level 1 and Level 2 apprentices will continue to provide a 25% credit on wages and salaries, with an increased cap of $5,000 per apprenticeship per level. All hiring incentives are net of other government assistance received or receivable.
- Corporation Capital Tax on Banks, Trust Corporations and Loan Corporations: The Corporation Capital Tax on banks, trust corporations and loan corporations is changed from 5% to 6%, commencing for taxation years ending after April 30, 2015.
- Small Business Venture Capital Tax Credit: The Small Business Venture Capital Tax Credit is being enhanced to stimulate economic growth and promote job creation by increasing the tax credit from 30% to 45% and increasing the lifetime limit in tax creditable shares an approved corporation can issue from $5 million to $10 million. The maximum annual tax credit claimable by an investor is increased by 50%, from $45,000 to $67,500; and an existing shareholder who has less than 35% equity in a company, increased from less than 10%, is eligible to purchase tax creditable shares.
- Odour Control Tax Credit: The Odour Control Tax Credit, scheduled to expire on December 31, 2014, will be extended to December 31, 2017.
- Research & Development Tax Credit: The credit will become refundable after 2009 for qualifying Manitoba corporations that conduct eligible R&D with research institutes in Manitoba on new technologies in biotechnology, medical science, the environment, agriculture, information, communications and computers, as prescribed. Eligible R&D expenses must be incurred in Manitoba under an eligible contract with a qualifying research institute, which will include post-secondary institutions and research institutes in Manitoba, as prescribed.
- Data Processing Investment Tax Credit: The Data Processing Centre Investment Tax Credit will be broadened to include 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 will be broadened to include data processing centres built using a business structure other than a corporation. Budget 2012 introduced the Data Processing Centre Investment Tax Credit to position Manitoba as a high technology data processing location of choice. The refundable income tax credit is 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. The Data Processing Tax Credits, scheduled to expire December 31, 2015, will be extended for three years to the end of 2018.