Business and Economic Development

Tax Credits and Programs:
Manitoba Works Capital Incentive


 

What is the Manitoba Works Capital Incentive?

The Manitoba Works Capital Incentive encourages significant new business investment or existing business expansion by creating a competitive tax environment to help diversify Manitoba’s economy and stimulate job creation.

The proponent of an approved project under the Incentive receives a tax rebate of the incremental (new) education property taxes that are generated as a result of capital investment on an identified property for a period of up to 20 years or until education property taxes are eliminated, whichever is sooner.

Incremental education property taxes assessed on improved properties are identified and labelled on tax bills as a Community Revitalization Levy. The property owner pays the Levy to the municipality annually; Economic Development and Jobs returns the Levy to the property owner.

 

What are incremental taxes?

Incremental taxes are the difference between the amount of property tax revenue generated before the development occurred and the amount of property tax revenue generated after the project is complete. This incentive rebates only the education-related taxes on a specifically identified property.

The Community Revitalization Tax Increment Financing Act (2009) gives the Province the authority to use incremental education-related property taxes to support significant property development over a limited time period.

The Act does not change or reduce municipalities’ authority to implement their own tax rebates through by-laws re-allocating the municipal portion of a property’s tax bill.

 

How does the Incentive work?

The Manitoba Works Capital Incentive can be made available to a new or existing business interested in expanding in the province if:

  • The proponent company makes a minimum capital investment of $10M to a specific property;

  • A minimum of 65% of total project costs are from private sources; and

  • There is demonstrable potential to create and/or maintain a minimum of 10 jobs in the province or the new business activity has a substantial and measureable net economic benefit to the province.

If the proponent company meets the above criteria, upon application they are considered for a rebate of the incremental education-related property taxes that are generated as a result of the capital investment on a property for a period up to 20 years, or until the education property tax is eliminated. Having an incremental tax rebate designation on a piece of property does not reduce or limit government’s ability or authority to eliminate the education property tax on that, or any, property in Manitoba.

Budget 2021 announced that education property taxes on all commercial properties will be reduced by 10% in tax year 2021. Residential properties receive a 25% reduction in 2021 and another 25% reduction in 2022. The Manitoba Works Capital Incentive continues to be offered during the education property tax phase out period. New proposals continue to be reviewed and assessed against the Incentive’s criteria. 

 

How are projects reviewed?

All proposed projects must focus on economic development and long-term job creation. Projects must demonstrate a strong return on investment for Manitoba and result in substantial improvements in the value of the property in order to receive funding, ensuring high value for Manitobans. Projects are reviewed comprehensively using a whole-of-government approach.

 

The Manitoba Works Capital Incentive’s key objectives


Advances Economic Growth

  • A strong Return on Investment
  • Drives further development and job creation
  • Assists post COVID-19 economic recovery and adaptation


Team Manitoba Approach

  • Collaborate across government and with regional partners to align with regional/industry growth strategies


Minimal Risk for Taxpayer Dollars

  • The Province does not pay the tax rebate unless and until taxes are collected
  • The Province only pays what is collected over a set number of years


Supports Key Sectors

Advanced Manufacturing • Aerospace • Agribusiness • Creative Industries • Education • Energy and Environment • Financial Services • Furniture and Building Products • Information and Communication Technologies • Life Sciences and Biotechnology • Mining and Minerals • Tourism • Transportation and Distribution

 

Is the Manitoba Works Capital Incentive a ‘fit’ for my proposed economic development project?

Aside from the application and review process, the incentive involves working with the public sector to designate the property on which your proposed project will be located. The value of the designated property before the project begins and after the project is completed determines the value of the incentive rebate.

Before you approach government, consider these key factors:

  1. At least 65% of the total project costs comes from private (non-government) investment.

    “Non-government” means the project does not rely on federal, municipal, provincial, or not-for-profit funding sources in order for it to move forward.

  2. Your company’s minimum capital investment in the project at a specific property is at least $10M.

    Projects below the ten million dollar financial threshold will not be considered.

  3. Your proposed project will create and maintain new jobs or bring new economic activity to Manitoba.

    You will be asked to demonstrate how your project will create and maintain at least 10 jobs in the province or how the new business activity the project brings will have a substantial and measureable net economic benefit to the province.

  4. The project supports Manitoba’s Economic Growth Action Plan.

    Projects that cannot demonstrate a link to economic growth will not be considered. Manitoba's Economic Growth Action Plan can be reviewed here.

    Beyond economic growth potential, projects that have LEED certification; contribute to, enhance, or develop new industrial or technological innovation in Manitoba; or advance the Truth and Reconciliation Commission of Canada's Calls to Action may receive additional consideration.

  5. Construction will begin within the next six to 24 months.

    It is challenging to calculate an accurate tax assessment estimate for a project start that is anticipated to be more than 24 months out. Treasury Board requires meaningful estimates in order to approve projects.

  6. The project proponent is both the property owner and taxpayer.

    Only projects for proponents who own and pay tax on improved property will be considered for the Incentive. Budget 2021’s Education Property Tax Rebate is applied to both pre-construction education taxes and post-construction incremental education taxes (the Levy) on Manitoba Works Capital Incentive identified properties.

 

If you believe your proposed project fulfills the incentive's objectives and you are ready to engage with department officials, download the Manitoba Works Capital Incentive Proposal and Request Form. Return the fully completed form and all necessary attachments and supporting material to:

Manitoba Works Capital Incentive
Economic Policy and Programs Branch
Manitoba Economic Development and Jobs
1020–259 Portage Avenue
Winnipeg, Manitoba
R3B 3P4
Email: TIF@gov.mb.ca

Department officials will contact you when your package is received in order to schedule a meeting to discuss your proposal. If you have questions about the form or about the evaluation and review process, please send an email to the address above.

 

Related Links

Introducing the Education Property Tax Rebate
April 19, 2021

Province announces more tax relief to protect Manitobans
April 1, 2021

Government announces new Manitoba Works Capital Incentive to support renewed economic growth
May 16, 2020

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