Manitoba data processing investment tax credits

The Manitoba data processing investment tax credits include the following three credits:

• the data processing centre investment tax credit for operator
• the data processing centre investment tax credit for building lessor
• the data processing property investment tax credit

Data processing centre (operator)

The Manitoba data processing centre investment tax credit for operator is a refundable credit available to corporations with a permanent establishment in Manitoba whose primary business activity, including the activities of their affiliates, is data processing.

The tax credit is equal to 4.5% of the capital cost of a new data processing building and 8% of the capital cost of new or refurbished data processing centre property. The company must have acquired this property for use in its data processing centre in Manitoba and the property must be available for use.

Data processing centre (building lessor)

The credit also applies to new data processing centres built or acquired in Manitoba, and leased to an eligible corporation that is dealing at arm's length with the lessor. This part of the credit is the Manitoba data processing centre investment tax credit for building lessor.

Data processing property

The Manitoba data processing property investment tax credit is a refundable credit for eligible corporations equal to 8% of the cost of data processing property purchased or leased in the current tax year. To be eligible for this credit, the total cost of data processing property purchased or leased in the year has to be at least $10 million.

The company must purchase or lease the property for use in its data processing centre in Manitoba and the property must be available for use. The corporation does not have to be primarily engaged in data processing in Manitoba, as long as it has a permanent establishment in Manitoba.

Partnerships

These credits also apply to data processing centres built by partnerships. The corporation can claim its proportionate share of the credit that the partnership would earn, if the partnership were a taxable Canadian corporation. To claim the entire amount of the credit, the corporation has to file an election, along with a written consent of the partnership, with its return.

Claiming the credits

File a completed Schedule 392, Manitoba Data Processing Investment Tax Credits, with your return.

On line 324 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the total amount of the credit you are claiming.

Forms and publications

• Schedule 392, Manitoba Data Processing Investment Tax Credits
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

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