Manitoba rental housing construction tax credit

This tax credit is equal to 8% of the capital cost of an eligible rental housing project.

Projects in which the application was submitted before March 13, 2018, must have been made available for use before 2020. For applications submitted after March 12, 2018, and before 2019, the project must have been made available for use before 2021.

Eligible projects means the construction or conversion from a non-residential use, of a building, group of buildings, or portion of a building, with at least five or more new residential rental units, and with at least 10% of the units qualifying as affordable rental housing units.

The maximum credit is set at $12,000 per eligible rental unit.

Manitoba Housing and Community Development used to review all tax credit applications and issue tax credit certificates to corporations that built eligible rental housing projects.

Eligible landlords can operate as a for-profit or not-for-profit corporation, but must be residents of Manitoba or have a permanent establishment in Manitoba.

Eligible not-for-profit projects received a fully refundable tax credit in the year in which they earned the tax credit, as the project became available for use. You can no longer claim the refundable credit.

The tax credit on for-profit projects is claimable over a maximum of five years, and is non-refundable.

Claiming the carryforward

File completed Schedule 394, Manitoba Rental Housing Construction Tax Credit, with your return. Tax-exempt corporations also have to file a return in order to claim this credit.

On line 602 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the non-refundable, unused, and unexpired credit carried forward from previous years and applied to reduce tax payable in the current year.

Supporting documents – You do not have to file the certificate with your return. However, keep it in case the CRA asks for it later.

Forms and publications

• Schedule 394, Manitoba Rental Housing Construction Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba Finance – Corporation Tax Credits
• Manitoba (provincial site)